SB-0134, As Passed Senate, May 5, 2015

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 134

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

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

 

18a, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22f, 22i, 23a, 24, 24a,

 

24c, 25e, 25f, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 41,

 

43, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 95a,

 

98, 99, 99h, 102, 104, 104b, 104c, 107, 147, 147a, 147c, 152a, 163,

 

201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 225, 226, 229a,

 

230, 236, 236a, 236b, 236c, 241, 244, 246, 252, 254, 255, 258, 263,

 

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

 

280, and 281 (MCL 388.1606, 388.1608b, 388.1611, 388.1611a,

 

388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1615, 388.1618,

 

388.1618a, 388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621f,

 

388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622i, 388.1623a,


388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1626a,

 

388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d,

 

388.1632p, 388.1639, 388.1639a, 388.1641, 388.1643, 388.1651a,

 

388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a,

 

388.1662, 388.1664b, 388.1674, 388.1681, 388.1694, 388.1694a,

 

388.1695a, 388.1698, 388.1699, 388.1699h, 388.1702, 388.1704,

 

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

 

388.1752a, 388.1763, 388.1801, 388.1801a, 388.1806, 388.1807a,

 

388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1817, 388.1825,

 

388.1826, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b,

 

388.1836c, 388.1841, 388.1844, 388.1846, 388.1852, 388.1854,

 

388.1855, 388.1858, 388.1863, 388.1863a, 388.1864, 388.1865,

 

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874,

 

388.1876, 388.1877, 388.1878, 388.1879, 388.1880, and 388.1881),

 

sections 6, 8b, 11a, 11j, 11k, 15, 20, 20d, 20f, 20g, 21f, 22d,

 

22f, 22i, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31a, 31d, 31f,

 

32d, 32p, 39, 39a, 41, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94, 94a,

 

98, 99, 99h, 104, 104b, 107, 147, 147a, 152a, 163, 201a, 206, 209,

 

210b, 217, 225, 229a, 230, 236a, 236b, 236c, 241, 246, 252, 263,

 

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

 

280, and 281 as amended and sections 11r, 43, 64b, 95a, 104c, 207a,

 

207b, and 207c as added by 2014 PA 196, sections 11, 11m, 18, 22a,

 

22b, 51a, 51c, 147c, 201, and 236 as amended by 2015 PA 5, section

 

18a as amended by 2004 PA 351, section 23a as added by 2012 PA 465,

 

sections 102, 244, and 258 as amended by 2013 PA 60, and sections

 

226, 254, and 255 as amended by 2012 PA 201, and by adding sections

 

31h, 35, 35a, 35b, 35d, 35e, 35f, 55, 61b, 67, 77, 99c, 102a, 102b,


102c, 102d, 104d, 210c, 210d, 215, and 230a; 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, the

 

education achievement system, or an intermediate district the sum

 

of the product of .90 .85 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 .15 times the final audited count

 

from the supplemental count day for the current immediately

 

preceding school year. A district's, public school academy's, or

 

intermediate district's membership shall be adjusted as provided

 

under section 25e for pupils who enroll in the district, public

 

school academy, or intermediate district after the pupil membership

 

count day. All pupil counts used in this subsection are as

 

determined by the department and calculated by adding the number of

 

pupils registered for attendance plus pupils received by transfer

 

and minus pupils lost as defined by rules promulgated by the

 

superintendent, and as corrected by a subsequent department audit.

 

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

 

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

 

revised school code, MCL 380.551, and is in compliance with section

 

553a of the revised school code, MCL 380.553a, a pupil's

 

participation, as determined by the department in accordance with

 

the pupil accounting manual, in the cyber school's educational


program is considered regular daily attendance; for the education

 

achievement system, a pupil's participation, as determined by the

 

department in accordance with the pupil accounting manual, in an

 

online educational program of the education achievement system or

 

of an achievement school is considered regular daily attendance;

 

and for a district a pupil's participation in an online course as

 

defined in section 21f is considered regular daily attendance. The

 

amount of the foundation allowance for a pupil in membership is

 

determined under section 20. In making the calculation of

 

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

 

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

 

the education achievement system, or an intermediate district:

 

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

 

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

 

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

 

shall not be counted for more than a total of 1.0 full-time equated

 

membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

membership, the pupil shall not be counted in membership in any

 

district.


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

 

in membership in the education achievement system.

 

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

 

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

 

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

 

partial fiscal years of operation shall be determined as follows:

 

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


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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

shall exclude from the district's pupil count for the immediately

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

     (k) In a district, a public school academy, the education


achievement system, or an intermediate district operating an

 

extended school year program approved by the superintendent, a

 

pupil enrolled, but not scheduled to be in regular daily attendance

 

on a pupil membership count day, shall be counted.

 

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

 

minimum age requirement to be eligible to attend school under

 

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

 

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

 

than 20 years of age on September 1 of the school year except as

 

follows:

 

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

 

instruction in a special education program or service approved by

 

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

 

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

 

year shall be counted in membership.

 

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

 

of the following may be counted in membership:

 

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

 

education high school diploma program, that is primarily focused on

 

educating homeless pupils.

 

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

 

entered school.

 

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

 

current school year.

 

     (D) Is considered to be homeless under 42 USC 11302.

 

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

 

be eligible to attend school for that school year under section


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

 

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

 

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

 

parent or legal guardian has notified the district in writing that

 

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

 

school year.

 

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

 

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

 

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

 

counted in membership unless the individual is a pupil student with

 

a disability as defined in R 340.1702 of the Michigan

 

administrative code. An individual participating in a job training

 

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

 

under former section 107b, administered by the Michigan strategic

 

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

 

programs, shall not be counted in membership.

 

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

 

academy or the education achievement system is also educated by a

 

district or intermediate district as part of a cooperative

 

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

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

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

 

and the instructional time scheduled for the pupil in the district

 

or intermediate district shall be included in the full-time equated

 

membership determination under subdivision (q) and section 101.

 

However, for pupils receiving instruction in both a public school


academy or the education achievement system and in a district or

 

intermediate district but not as a part of a cooperative education

 

program, the following apply:

 

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

 

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

 

specified in subdivision (q), required under section 101, the

 

public school academy or the education achievement system shall

 

receive as its prorated share of the full-time equated membership

 

for each of those pupils an amount equal to 1 times the product of

 

the hours of instruction the public school academy or the education

 

achievement system provides divided by the number of hours

 

specified in subdivision (q) required under section 101 for full-

 

time equivalency, and the remainder of the full-time membership for

 

each of those pupils shall be allocated to the district or

 

intermediate district providing the remainder of the hours of

 

instruction.

 

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

 

system provides instruction for less than 1/2 of the class hours

 

specified in subdivision (q), 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 specified in subdivision (q) required under section 101 for

 

full-time equivalency, and the remainder of the full-time

 

membership for each of those pupils shall be allocated to the


public school academy or the education achievement system.

 

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

 

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

 

education program shall not be counted in membership if there are

 

also adult education participants being educated in the same

 

program or classroom.

 

     (p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

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

 

equated memberships shall be consistent with section 101(3). 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) Beginning in 2012-2013, full-time Full-time equated

 

memberships for pupils in kindergarten shall be determined by

 

dividing the number of instructional hours scheduled and provided

 

per year per kindergarten pupil by the same number used for

 

determining full-time equated memberships for pupils in grades 1 to

 

12. However, to the extent allowable under federal law, for a

 

district or public school academy that provides evidence

 

satisfactory to the department that it used federal title I money

 

in the 2 immediately preceding school fiscal years to fund full-

 

time kindergarten, full-time equated memberships for pupils in

 

kindergarten shall be determined by dividing the number of class


hours scheduled and provided per year per kindergarten pupil by a

 

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

 

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

 

counting of full-time equated memberships for pupils in

 

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

 

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

 

achievement system that has pupils enrolled in a grade level that

 

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

 

education achievement system in the immediately preceding school

 

year, the number of pupils enrolled in that grade level to be

 

counted in membership is the average of the number of those pupils

 

enrolled and in regular daily attendance on the pupil membership

 

count day and the supplemental count day of the current school

 

year, as determined by the department. Membership shall be

 

calculated by adding the number of pupils registered for attendance

 

in that grade level on the pupil membership count day plus pupils

 

received by transfer and minus pupils lost as defined by rules

 

promulgated by the superintendent, and as corrected by subsequent

 

department audit, plus the final audited count from the

 

supplemental count day for the current school year, and dividing

 

that sum by 2.

 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil


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

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 

hours specified in subdivision (q) required under section 101 for

 

full-time equivalency. For the purposes of this subdivision, a

 

district shall be considered to be providing appropriate

 

instruction if all of the following are met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies that are comparable to those otherwise provided in the

 

district's alternative education program.

 

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

 

alternative education program.

 

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

 

pupil's transcript.

 

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

 

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

 

with its authorizing body is revoked or the public school academy


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

 

or the education achievement system within 45 days after the pupil

 

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

 

the education achievement system's pupil count for the pupil

 

membership count day to include the pupil in the count.

 

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

 

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

 

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

 

product of .90 .85 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 .15 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 Day who is enrolled in an intermediate district program

 

that begins before Labor day 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.Day.

 

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


membership on the pupil membership count day in a middle college

 

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

 

membership on the pupil membership count day and on the

 

supplemental count day for the current school year, as determined

 

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

 

counted in membership by the operating district on the immediately

 

preceding supplemental count day, the pupil shall be excluded from

 

the district's immediately preceding supplemental count for the

 

purposes of determining the district's membership.

 

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

 

achievement system that educates a pupil who attends a United

 

States Olympic education center Education Center may count the

 

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

 

resident of this state.

 

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

 

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

 

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

 

district or the education achievement system.

 

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

 

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

 

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

 

district operating the program reports that the pupil was enrolled

 

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

 

membership counting provisions under this subdivision and the

 

operation of the other membership counting provisions under this

 

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

 

a fiscal year, the payment made for the pupil under sections 22a


and 22b shall not be based on more than 1.0 FTE for that pupil, and

 

any portion of an FTE for that pupil that exceeds 1.0 shall instead

 

be paid under section 25f. The district operating the program shall

 

report to the center the number of pupils who were enrolled in the

 

program and were in full attendance for a month not later than the

 

tenth day of the next month. A district shall not report a pupil as

 

being in full attendance for a month unless both of the following

 

are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

     (ee) A pupil enrolled in an online course under section 21f

 

shall be counted in membership in the pupil's district of

 

residence.

 

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

 

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

 

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

 

adjust the membership count of the district or the education

 

achievement system in which a former pupil of the public school


academy enrolls and is in regular daily attendance for the next

 

school year to ensure that the district or the education

 

achievement system receives the same amount of membership aid for

 

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

 

education achievement system on the supplemental count day of the

 

preceding school year.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

     (6) "Pupil" means a person in membership in a public school. A

 

district must have the approval of the pupil's district of

 

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

 

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

 

following:

 

     (a) A nonpublic part-time pupil enrolled in grades 1 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 or the

 

education achievement system.

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.


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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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


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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     (i) A pupil enrolled in the Michigan virtual school, for the

 

pupil's enrollment in the Michigan virtual school.

 

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

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

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

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.


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

 

district of residence who attends a United States Olympic education

 

center.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.

 

     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 

section 21f.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.


     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

been excused by the district, shall not be counted as 1.0 full-time

 

equated membership. A pupil who is excused from attendance on the

 

pupil membership count day or supplemental count day and who fails

 

to attend each of the classes in which the pupil is enrolled within

 

30 calendar days after the pupil membership count day or

 

supplemental count day shall not be counted as 1.0 full-time

 

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

 

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

 

academy, or the education achievement system before the pupil

 

membership count day or supplemental count day of a particular year

 

but was expelled or suspended on the pupil membership count day or


supplemental count day shall only be counted as 1.0 full-time

 

equated membership if the pupil resumed attendance in the district,

 

intermediate district, public school academy, or education

 

achievement system within 45 days after the pupil membership count

 

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

 

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

 

a class shall be counted as a prorated membership for the classes

 

the pupil attended. For purposes of this subsection, "class" means

 

a period of time in 1 day when pupils and a certificated teacher or

 

legally qualified substitute teacher are together and instruction

 

is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

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

 

of this article only, 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 (p), or a pupil

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

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

 

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

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

approved by the governing board of a district or, for an

 

achievement school, by the chancellor of the achievement authority

 

and that contains a presentation of principles of a subject, or

 

that is a literary work relevant to the study of a subject required

 

for the use of classroom pupils, or another type of course material

 

that forms the basis of classroom instruction.

 

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


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

 

district, or other entity under all of the provisions of this

 

article.

 

     Sec. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised

 

school code and is eligible to receive funding under this article

 

within 30 days after a contract is submitted to the department by

 

the authorizing body of a public school academy.

 

     (2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this article to the newly authorized public school

 

academy shall be a number that is equivalent to the sum of the last

 

district code assigned to a public school academy located in the

 

same county as the newly authorized public school academy plus 1.

 

However, if there is not an existing public school academy located

 

in the same county as the newly authorized public school academy,

 

then the district code the department shall use to make payments

 

under this article to the newly authorized public school academy

 

shall be a 5-digit number that has the county code in which the

 

public school academy is located as its first 2 digits, 9 as its

 

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

 

the number of public school academies in a county grows to exceed

 

100, the third digit in this 5-digit number shall then be 7 for the

 

public school academies in excess of 100.

 

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

 

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


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

 

community college other than a federal tribally controlled

 

community college, or other authorizing body that is not empowered

 

to authorize a school of excellence to operate statewide and is

 

eligible to receive funding under this article, the department

 

shall assign a district code that includes as the first 2 digits

 

the county code in which the authorizing body is located.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2015,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,827,097,400.00 $11,812,947,400.00 from the state school aid

 

fund, the sum of $18,000,000.00 from the MPSERS retirement

 

obligation reform reserve fund created under section 147b, and the

 

sum of $33,700,000.00 from the general fund. For the fiscal year

 

ending September 30, 2016, there is appropriated for the public

 

schools of this state and certain other state purposes relating to

 

education the sum of $12,151,594,700.00 from the state school aid

 

fund and the sum of $41,700,000.00 from the general fund. In

 

addition, all other available federal funds are appropriated each

 

fiscal year for the fiscal year years ending September 30, 2015 and

 

September 30, 2016.

 

     (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 2014-2015, 2015-2016, 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 $126,000,000.00 for 2014-2015

 

$143,000,000.00 for 2015-2016 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 2014-2015, 2015-2016, 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 2014-2015 2015-2016 an amount not to exceed

 

$3,000,000.00 $4,000,000.00 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. 11r. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 an amount not to exceed $4,000,000.00

 

$8,935,900.00 to be deposited into the distressed districts

 

emergency grant rehabilitation fund created under this section for

 

the purpose of funding grants under this section. These funds are

 

intended to support the rehabilitation of school districts

 

experiencing severe academic and financial stress in order to

 

mitigate the impact on student learning.

 

     (2) The distressed districts emergency grant rehabilitation

 

fund is created as a separate account within the state school aid

 

fund. The state treasurer may receive money or other assets from

 

any source for deposit into the distressed districts emergency

 

grant rehabilitation fund. The state treasurer shall direct the

 

investment of the distressed districts emergency grant

 

rehabilitation fund and shall credit to the distressed districts

 

emergency grant rehabilitation fund interest and earnings from the

 

fund.


     (3) Subject to subsection (4), a district is eligible to

 

receive a grant from the distressed districts emergency grant fund

 

if either of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

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

 

but the dissolution has not yet taken effect under that section.

 

     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls

 

pupils who were previously enrolled in a district that was

 

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

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not

 

eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the

 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section

 

20g.


     (3) (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

the district receiving funds under this section, the amount of the

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the

 

intended use of funds disbursed under this section.

 

     (4) (7) Money in the distressed districts emergency grant

 

rehabilitation fund at the close of a fiscal year shall remain in

 

the distressed districts emergency grant rehabilitation fund and

 

shall not lapse to the state school aid fund or to the general

 

fund.

 

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

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

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

 

district has received more than its proper apportionment, the

 

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

 

next apportionment. Notwithstanding any other provision in this

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

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

 

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


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

 

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

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

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

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

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

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations.

 

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

 

department's designee or because of new or updated information

 

received by the department, the department determines that the


amount paid to a district or intermediate district under this

 

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

 

incorrect, the department shall make the appropriate deduction or

 

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

 

the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the incorrect amount was paid.

 

If the district does not receive an allocation for the fiscal year

 

or if the allocation is not sufficient to pay the amount of any

 

deduction, the amount of any deduction otherwise applicable shall

 

be satisfied from the proceeds of a loan to the district under the

 

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,

 

or from the proceeds of millage levied or pledged under section

 

1211 of the revised school code, MCL 380.1211, as determined by the

 

department.

 

     (4) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.

 

     (5) Expenditures made by the department under this article

 

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

 

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

 

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

 

programs and services, there is appropriated for 2014-2015 2015-

 

2016 for obligations in excess of applicable appropriations an

 

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


amounts available from overpayments.

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, other supplies, and any other school

 

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

 

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

 

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

 

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

 

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

 

not be applied or taken 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 board adopts its annual operating budget for the following

 

school fiscal year, or after a board adopts a subsequent revision

 

to that budget, the district shall make all of the following

 

available through a link on its website home page, homepage, or may

 

make the information available through a link on its intermediate

 

district's website home page, homepage, in a form and manner

 

prescribed by the department:


     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) Using data that have already been collected and submitted

 

to the department, a summary of district expenditures for the most

 

recent fiscal year for which they are available, expressed in the

 

following 2 pie charts:

 

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

 

following subcategories:

 

     (A) Salaries and wages.

 

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

 

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

 

benefits.

 

     (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 employee

 

health benefits act, 2007 PA 106, MCL 124.75.

 

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

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

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

 

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

 

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

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

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

 

benefit included in the compensation package for the superintendent

 

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

 

exceeds $100,000.00.

 

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

 

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

 

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

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under this

 

article.

 

     (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

 

15, 2014 for reporting 2013-2014 data during 2014-2015, and not

 

later than November 1 each year for reporting the prior fiscal year

 

data: for all subsequent fiscal years:


     (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 15, 2014 for 2014-2015 and by November 1 for

 

all subsequent fiscal years, each year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with accounting manuals and charts of accounts approved

 

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

 

report shall also contain the website address where the department

 

can access the report required under section 620 of the revised


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

 

prescribed Michigan public school accounting manual chart of

 

accounts includes standard conventions to distinguish expenditures

 

by allowable fund function and object. The functions shall include

 

at minimum categories for instruction, pupil support, instructional

 

staff support, general administration, school administration,

 

business administration, transportation, facilities operation and

 

maintenance, facilities acquisition, and debt service; and shall

 

include object classifications of salary, benefits, including

 

categories for active employee health expenditures, purchased

 

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

 

report the required level of detail consistent with the manual as

 

part of the comprehensive annual financial report.

 

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

 

intermediate district shall file with the department the special

 

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

 

the manner prescribed by the department.

 

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

 

district shall file with the center the transportation expenditure

 

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

 

by the center.

 

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

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

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

 

property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public


school academy sells the property at fair market value.

 

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

 

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

 

withhold all state school aid due to the district or intermediate

 

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

 

the district or intermediate district, until the district or

 

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

 

(7). However, the department shall not withhold the payment due on

 

October 20 due to the operation of this subsection. If the district

 

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

 

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

 

intermediate district forfeits the amount withheld.

 

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

 

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

 

state school aid otherwise payable 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) (11) Not later than November 1, 2014, 2015, if a district

 

or intermediate district offers online learning under section 21f,

 

the district or intermediate district shall submit to the

 

department a report that details the per-pupil costs of operating

 

the online learning by vendor type. The report shall include at

 

least all of the following information concerning the operation of


online learning for the school fiscal year ending June 30,

 

2014:2015:

 

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

 

of each district that enrolled students in the online learning.

 

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

 

learning and the total number of membership pupils enrolled in the

 

online learning.

 

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

 

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

 

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

 

enrolling in the district offering online learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

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

 

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

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

 

training, online instruction and instructional support, personnel,

 

hardware and software, payment to each online learning provider,

 

and other costs associated with operating online learning.

 

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

 

the district and the state in which each online education provider

 

is headquartered.

 

     (13) (12) Not later than March 31, 2015, 2016, the department

 

shall submit to the house and senate appropriations subcommittees


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

 

senate fiscal agencies a report summarizing the per pupil costs by

 

vendor type of online courses available under section 21f.

 

     (14) (13) As used in subsections (11) and (12), (12) and (13),

 

"vendor type" means the following:

 

     (a) Online courses provided by the Michigan virtual

 

university.

 

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

 

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

 

code, MCL 380.551.

 

     (c) Online courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

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

 

intermediate district.

 

     Sec. 18a. Grant funds awarded and allotted to a district,

 

intermediate district, or other entity, unless otherwise specified

 

in this act, article, shall be expended by the grant recipient

 

before the end of the school fiscal year immediately following the

 

fiscal year in which the funds are received. If a grant recipient

 

does not expend the funds received under this act article before

 

the end of the fiscal year in which the funds are received, the

 

grant recipient shall submit a report to the department not later

 

than November 1 after the fiscal year in which the funds are

 

received indicating whether it expects to expend those funds during

 

the fiscal year in which the report is submitted. 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


after the fiscal year in which the funds are received.

 

     Sec. 20. (1) For 2014-2015, 2015-2016, both of the following

 

apply:

 

     (a) The basic foundation allowance is $8,099.00.$8,149.00.

 

     (b) The minimum foundation allowance is $7,126.00.$7,351.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

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

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

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

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$10.00) $15.00) times (the difference between the district's


foundation allowance for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year]. However, the foundation allowance for a

 

district that had less than the basic foundation allowance for the

 

immediately preceding state fiscal year shall not exceed the basic

 

foundation allowance for the current state fiscal year. For the

 

purposes of this subdivision, for 2014-2015, 2015-2016, the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year shall be considered to be $7,076.00. For 2014-2015, 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 district's

 

foundation allowance for 2013-2014 plus $50.00.$7,251.00.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2014-

 

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

 

for 2014-2015.2015-2016.

 

     (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 payment under section 22c

 

as that section was in effect for 2013-2014, 2014-2015, the

 

district's 2013-2014 2014-2015 foundation allowance shall be

 

considered to have been an amount equal to the sum of the

 

district's actual 2013-2014 2014-2015 foundation allowance as

 

otherwise calculated under this section plus the per-pupil amount

 

of the district's equity payment for 2013-2014 2014-2015 under

 

section 22c as that section was in effect for 2013-2014.2014-2015.

 

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

 

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

 

the district's foundation allowance or the basic foundation


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

 

minus the local portion of the district's foundation allowance

 

divided by the district's membership excluding special education

 

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

 

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

 

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

 

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

 

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

 

district's foundation allowance divided by the district's

 

membership excluding special education pupils. For a district that

 

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

 

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

 

foundation allowance shall be calculated as if that reduction did

 

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

 

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

 

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

 

satisfy debt obligations of the dissolved district under section 12

 

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

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection does not include the taxable value of

 

property within the geographic area of the dissolved district.

 

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

 

shall be based on the foundation allowance of the pupil's district

 

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

 

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

 

allocation calculated under this section shall be based on the

 

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


residence or the foundation allowance of the educating district.

 

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

 

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

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

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

 

residence.

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. For pupils in membership, other than special

 

education pupils, in a public school academy that is a cyber school

 

and is authorized by a school district, the allocation calculated

 

under this section is an amount per membership pupil other than

 

special education pupils in the public school academy equal to the

 

foundation allowance of the district that authorized the public

 

school academy or the state maximum public school academy

 

allocation, whichever is less. However, a public school academy

 

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

 

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

 

membership pupil other than special education pupils for the

 

district in which the public school academy is located and the


state portion of that district's foundation allowance shall not

 

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

 

this subsection. Notwithstanding section 101, for a public school

 

academy that begins operations after the pupil membership count

 

day, the amount per membership pupil calculated under this

 

subsection shall be adjusted by multiplying that amount per

 

membership pupil by the number of hours of pupil instruction

 

provided by the public school academy after it begins operations,

 

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

 

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

 

result of this calculation shall not exceed the amount per

 

membership pupil otherwise calculated under this subsection.

 

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

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

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

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

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

 

the minimum number of hours of pupil instruction required under

 

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


amount per membership pupil otherwise calculated under this

 

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

 

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

 

district or the achievement authority under section 1280c of the

 

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

 

considered to be an achievement school within the education

 

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

 

a pupil attending that public school is considered to be in

 

membership in the education achievement system and not in

 

membership in the district that operated the school before the

 

transfer.

 

     (8) 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. In

 

addition, for the next 2 fiscal years that begin after a

 

consolidation or annexation under this section, the resulting

 

district's foundation allowance shall be its foundation allowance

 

as otherwise calculated under this subsection plus $200.00. This

 

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


subsequent consolidation or annexation that affects the district.

 

     (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, public school academies, or the

 

education achievement system shall not be made under this section.

 

Rather, the calculations under this section shall be used to

 

determine the amount of state payments under section 22b.

 

     (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 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 for the immediately

 

preceding state fiscal year minus $10.00) $15.00) 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 2014-

 

2015, the minimum foundation allowance for the immediately

 

preceding state fiscal year shall be considered to be $7,076.00.

 

For 2014-2015, for 2015-2016, the maximum public school academy

 

allocation is $7,218.00.$7,351.00.

 

     (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, or commercial personal property, or property occupied by

 

a public school academy.

 

     (m) "Principal residence", "qualified agricultural property",

 

"qualified forest property", "supportive housing property",

 

"industrial personal property", and "commercial personal property"

 

mean those terms as defined in section 1211 of the revised school

 

code, MCL 380.1211.


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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

     (o) "School operating purposes" means the purposes included in

 

the operation costs of the district as prescribed in sections 7 and

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

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

 

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

 

380.1211, and retained for school operating purposes.

 

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

 

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

 

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

 

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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special

 

education pupils for the school year ending in the current state

 

fiscal year.

 

     Sec. 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 2014-2015, 2015-2016, 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 article 5, 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 $6,000,000.00 for 2014-2015

 

$12,400,000.00 for 2015-2016 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

 

section 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

 

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) (2) The amount allocated to each eligible district under

 

this section 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 for 2015-2016 if the sum of the following is less than

 

$0.00:

 

     (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 section 22f from 2014-2015 to 2015-2016, if the

 

district qualified for funding under that section for both 2014-

 

2015 and 2015-2016.

 

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

 

funding under 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 $0.00

 

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 section 22f from 2014-2015 to 2015-2016, if the

 

district qualified for funding under that section for both 2014-

 

2015 and 2015-2016.

 

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

 

funding under 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) (3) 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. 20g. (1) From the money appropriated under section 11,

 

there is allocated an amount not to exceed $2,200,000.00 for 2014-

 

2015 2015-2016 for grants to eligible districts that first received

 

payments under this section in 2013-2014 for transition costs

 

related to the enrollment of pupils who were previously enrolled in

 

a district that was dissolved under section 12 of the revised

 

school code, MCL 380.12, allocated as provided under subsection

 

(3). Payments under this section shall continue for a total of 4

 

fiscal years following the dissolution of a district, after which

 

the payments shall cease.

 

     (2) A receiving school district, as that term is defined in


section 12 of the revised school code, MCL 380.12, is an eligible

 

district under this section.

 

     (3) The amount allocated to each eligible district under This

 

section is an amount equal to the product of the number of

 

membership pupils enrolled in the eligible district who were

 

previously enrolled in the dissolved school district in the school

 

year immediately preceding the dissolution, or who reside in the

 

geographic area of the dissolved school district and are entering

 

kindergarten, times 10.0% of the lesser of the foundation allowance

 

of the eligible district as calculated under section 20 or the

 

basic foundation allowance under section 20(1).

 

     (4) As used in this section, "dissolved school district" means

 

a school district that has been declared dissolved under section 12

 

of the revised school code, 1976 PA 451, MCL 380.12.

 

     Sec. 21f. (1) A pupil enrolled in a district in any of grades

 

6 to 12 is eligible to enroll in an online course as provided for

 

in this section.

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a district shall enroll an eligible pupil in up to 2 online courses

 

as requested by the pupil during an academic term, semester, or

 

trimester. Unless the pupil is newly enrolled in the pupil's

 

primary district, the request for online course enrollment must be

 

made in the academic term, semester, trimester, or summer preceding

 

the enrollment. A district may not establish additional

 

requirements that would prohibit a pupil from taking an online

 

course. If a pupil has demonstrated previous success with online

 

courses and the school leadership and the pupil's parent or legal


guardian determine that it is in the best interest of the pupil, a

 

pupil may be enrolled in more than 2 online courses in a specific

 

academic term, semester, or trimester. Consent of the pupil's

 

parent or legal guardian is not required if the pupil is at least

 

age 18 or is an emancipated minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's educating primary district's catalog of online

 

courses described in subsection (7)(a) or the statewide catalog of

 

online courses maintained by the Michigan virtual university

 

Virtual University pursuant to section 98.

 

     (4) A providing district or community college shall determine

 

whether or not it has capacity to accept applications for

 

enrollment from nonresident applicants in online courses and may

 

use that limit as the reason for refusal to enroll an applicant. If

 

the number of nonresident applicants eligible for acceptance in an

 

online course does not exceed the capacity of the providing

 

district or community college to provide the online course, the

 

providing district or community college shall accept for enrollment

 

all of the nonresident applicants eligible for acceptance. If the

 

number of nonresident applicants exceeds the providing district's

 

or community college's capacity to provide the online course, the

 

providing district or community college shall use a random draw

 

system, subject to the need to abide by state and federal

 

antidiscrimination laws and court orders.

 

     (5) A pupil's primary district may deny a the pupil enrollment

 

in an online course if any of the following apply, as determined by

 

the district:


     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.

 

     (e) The online course is of insufficient quality or rigor. A

 

district that denies a pupil enrollment for this reason shall make

 

a reasonable effort to assist the pupil to find an alternative

 

course in the same or a similar subject that is of acceptable rigor

 

and quality.

 

     (f) The cost of the online course exceeds the amount

 

identified in subsection (8), (10), unless the pupil's parent or

 

legal guardian agrees to pay the cost that exceeds this amount.

 

     (g) The online course enrollment request does not occur within

 

the same timelines established by the primary district for

 

enrollment and schedule changes for regular courses.

 

     (6) If a pupil is denied enrollment in an online course by a

 

the pupil's primary district, the pupil may appeal the denial by

 

submitting a letter to the superintendent of the intermediate

 

district in which the pupil's educating primary district is

 

located. The letter of appeal shall include the reason provided by

 

the primary district for not enrolling the pupil and the reason why

 

the pupil is claiming that the enrollment should be approved. The


intermediate district superintendent or designee shall respond to

 

the appeal within 5 days after it is received. If the intermediate

 

district superintendent or designee determines that the denial of

 

enrollment does not meet 1 or more of the reasons specified in

 

subsection (5), the primary district shall allow the pupil to

 

enroll in the online course.

 

     (7) To offer or provide an online course under this section, a

 

the providing district or intermediate district shall do all of the

 

following:

 

     (a) Provide the Michigan virtual university Virtual University

 

with the course syllabus in a form and method prescribed by the

 

Michigan virtual university Virtual University for inclusion in a

 

statewide online course catalog. The district or intermediate

 

district shall also provide on its publicly accessible website a

 

link to the course syllabi for all of the online courses offered by

 

the district or intermediate district and a link to the statewide

 

catalog of online courses maintained by the Michigan virtual

 

university.Virtual University.

 

     (b) Assign to each pupil a teacher of record and provide the

 

primary district with the personal identification code for the

 

teacher of record.

 

     (c) (b) Offer the online course on an open entry and exit

 

method, or aligned to a semester, trimester, or accelerated

 

academic term format.

 

     (d) (c) Not later than October 1, 2014, 2015, provide the

 

Michigan virtual university with the number of enrollments in each

 

online course the district or intermediate district offered


provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.

 

     (8) To provide an online course under this section, a

 

community college shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (c) Ensure that each online course it provides under this

 

section generates postsecondary credit.

 

     (d) Beginning with October 1, 2016, and by October 1 of each

 

year thereafter, provide the Michigan Virtual University with the

 

number of enrollments in each online course the community college

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.

 

     (e) Be taught by an instructor employed by or contracted

 

through the community college.

 

     (9) For any online course a pupil enrolls in under this

 

section, the pupil's primary district must assign to the pupil a

 

mentor to monitor the pupil's progress during the online course and

 

shall supply the providing district with the mentor's contact


information.

 

     (10) (8) For a pupil enrolled in 1 or more online courses

 

published in the pupil's educating primary district's catalog of

 

online courses under subsection (7) or in the statewide catalog of

 

online courses maintained by the Michigan virtual university,

 

Virtual University, the primary district shall use foundation

 

allowance or per-pupil funds calculated under section 20 to pay for

 

the expenses associated with the online course or courses. The

 

district shall pay 80% of the cost of the online course upon

 

enrollment and 20% upon completion as determined by the district. A

 

district is not required to pay toward the cost of an online course

 

an amount that exceeds 8.33% 6.67% of the minimum foundation

 

allowance for the current fiscal year as calculated under section

 

20.

 

     (11) (9) An online learning pupil shall have the same rights

 

and access to technology in his or her primary district's school

 

facilities as all other pupils enrolled in the pupil's primary

 

district.

 

     (12) (10) If a pupil successfully completes an online course,

 

as determined by the pupil's primary district, the pupil's primary

 

district shall grant appropriate academic credit for completion of

 

the course and shall count that credit toward completion of

 

graduation and subject area requirements. A pupil's school record

 

and transcript shall identify the online course title as it appears

 

in the online course syllabus.

 

     (13) (11) The enrollment of a pupil in 1 or more online

 

courses shall not result in a pupil being counted as more than 1.0


full-time equivalent pupils under this article.

 

     (14) (12) The portion of the full-time equated pupil

 

membership for which a pupil is enrolled in 1 or more online

 

courses under this section shall not be transferred under the pupil

 

transfer process under section 25e.

 

     (15) (13) As used in this section:

 

     (a) "Mentor" means a professional employee of the primary

 

district who monitors the pupil's progress, ensures the pupil has

 

access to needed technology, is available for assistance, and

 

ensures access to the teacher of record. A mentor may also serve as

 

the teacher of record if the mentor meets the requirements under

 

subdivision (g).

 

     (b) (a) "Online course" means a course of study that is

 

capable of generating a credit or a grade, that is provided in an

 

interactive internet-connected Internet-connected learning

 

environment, in which pupils are separated from their teachers by

 

time or location, or both, and, if the course is provided by a

 

district or intermediate district, in which a teacher who holds a

 

valid Michigan teaching certificate that qualifies the teacher to

 

teach the course is responsible for providing instruction,

 

determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing

 

intervention strategies, reporting outcomes, and evaluating the

 

effects of instruction and support strategies.

 

     (c) (b) "Online course syllabus" means a document that

 

includes all of the following:

 

     (i) The state academic standards addressed in an online


course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district or intermediate

 

district and the course titles and course codes from the national

 

center for education statistics National Center for Education

 

Statistics (NCES) school codes for the exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using

 

the guidelines and model review process published by the Michigan

 

virtual university.Virtual University.

 

     (d) (c) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (e) (d) "Primary district" means the pupil's district that

 

enrolls the pupil and reports the pupil as a full-time equated

 

pupil for pupil membership purposes.of residence.


     (f) "Providing district" means the district, intermediate

 

district, or community college that the primary district pays to

 

provide the online course.

 

     (g) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, where applicable, is endorsed

 

in the subject area and grade of the online course; and is

 

responsible for providing instruction, determining instructional

 

methods for each pupil, diagnosing learning needs, assessing pupil

 

learning, prescribing intervention strategies, reporting outcomes,

 

and evaluating the effects of instruction and support strategies.

 

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

 

allocated an amount not to exceed $5,380,000,000.00 for 2014-2015

 

$5,282,300,000.00 for 2015-2016 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.

 

     (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 25f.

 

     (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, and 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, or 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, and 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, and 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) From the appropriation in section 11, there is

 

allocated an amount not to exceed $3,434,000,000.00 for 2014-2015

 

$3,688,700,000.00 for 2015-2016 for discretionary nonmandated

 

payments to districts 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 22a and 51c in

 

order to fully fund those calculated allocations for the same

 

fiscal year.

 

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

 

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

 

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

 

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

 

sections 22a and 51c.

 

     (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.

 

     (12) Payments under this section are subject to section 25f.

 

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

 

not to exceed $2,584,600.00 $5,000,000.00 is allocated for 2014-

 

2015 2015-2016 for supplemental payments to rural districts under

 

this section.


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

 

allocated for 2014-2015 2015-2016 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 2014-2015 2015-2016 an

 

amount not to exceed $1,627,300.00 $4,042,700.00 for payments under

 

this subsection to districts that meet all of the following:

 

     (a) The district has 5.0 have 7.3 or fewer pupils per square

 

mile as determined by the department.

 

     (b) The district has a total square mileage greater than 200.0

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

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

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$75,000,000.00 $30,000,000.00 to provide incentive payments to

 

districts that meet best practices under this section. Funds

 

allocated under this section are intended to increase the fiscal

 

health of districts statewide, to decrease the number of districts

 

with ongoing deficits, to increase the number of pupils reading at

 

grade level by the end of grade 3, and to increase the number of

 

pupils who are college- and career-ready upon high school

 

graduation. Payments received under this section may be used for

 

any purpose for which payments under sections 22a and 22b may be

 

used.


     (2) The amount of the incentive payment under this section is

 

an amount equal to $50.00 $20.00 per-pupil. A district shall

 

receive an incentive payment under this section if the district

 

satisfies at least 7 both of the following requirements not later

 

than June 1, 2015:2016:

 

     (a) If a district provides medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would

 

constitute a health care services benefit, to employees and their

 

dependents, the district is the policyholder for each of its

 

insurance policies that covers 1 or more of these benefits. A

 

district that does not directly employ its staff or a district with

 

a voluntary employee beneficiary association that pays no more than

 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     (b) The district has obtained competitive bids on the

 

provision of pupil transportation, food service, custodial, or 1 or

 

more other noninstructional services for 2014-2015. In comparing

 

competitive bids to the current costs of providing 1 or more of

 

these services, a district shall exclude the unfunded accrued

 

liability costs for retirement and other benefits from the

 

district's current costs.

 

     (c) The district accepts applications for enrollment by

 

nonresident applicants under section 105 or 105c. A public school


academy is considered to have met this requirement.

 

     (d) The district offers online courses or blended learning

 

opportunities to all eligible pupils. In order to satisfy this

 

requirement, a district must make all eligible pupils and their

 

parents or guardians aware of these opportunities and must publish

 

an online course syllabus as described in section 21f for each

 

online course that the district offers. For the purposes of this

 

subdivision:

 

     (i) "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.

 

     (ii) "Online course" means a course of study that is capable

 

of generating a credit or a grade, that is provided in an

 

interactive internet-connected learning environment, in which

 

pupils are separated from their teachers by time or location, or

 

both, and in which a teacher with a valid Michigan teaching

 

certificate is responsible for determining appropriate

 

instructional methods for each pupil, diagnosing learning needs,

 

assessing pupil learning, prescribing intervention strategies,

 

reporting outcomes, and evaluating the effects of instruction and

 

support strategies.

 

     (a) Meets the requirements of at least 2 of the following

 

financial best practices:


     (i) (e) The district provides to parents and community members

 

a dashboard or report card demonstrating the district's efforts to

 

manage its finances responsibly. The dashboard or report card shall

 

include revenue and expenditure projections for the district for

 

fiscal year 2014-2015 2015-2016 and fiscal year 2015-2016, 2016-

 

2017, a listing of all debt service obligations, detailed by

 

project, including anticipated fiscal year 2014-2015 2015-2016

 

payment for each project, a listing of total outstanding debt, and

 

at least all of the following for the 3 most recent school years

 

for which the data are available:

 

     (A) (i) Graduation and dropout rates.

 

     (B) (ii) Average class size in grades kindergarten to 3.

 

     (C) (iii) College readiness as measured by Michigan merit

 

examination test scores.

 

     (D) (iv) Elementary and middle school MEAP Michigan student

 

test of educational progress (M-STEP) scores.

 

     (E) (v) Teacher, principal, and superintendent salary

 

information including at least minimum, average, and maximum pay

 

levels.

 

     (F) (vi) General fund balance.

 

     (G) (vii) The total number of days of instruction provided.

 

     (f) The district complies with a method of compensation for

 

teachers and school administrators that includes job performance

 

and accomplishments as a significant factor in determining

 

compensation, as required under section 1250 of the revised school

 

code, MCL 380.1250.

 

     (g) The district's collective bargaining agreements,


including, but not limited to, appendices, addenda, letters of

 

agreement, or any other documents reflecting agreements with

 

collective bargaining representatives, do not contain any

 

provisions pertaining to, relating to, or that are otherwise

 

contrary to the prohibited subjects of bargaining enumerated in

 

section 15(3) of 1947 PA 336, MCL 423.215.

 

     (h) The district implements a comprehensive guidance and

 

counseling program.

 

     (i) The district offers pupils in grades K to 8 the

 

opportunity to complete coursework or other learning experiences

 

that are substantially equivalent to 1 credit in a language other

 

than English.

 

     (ii) If the district has an ending general fund balance for

 

the immediately preceding fiscal year less than or equal to 5% of

 

operating expenditures as determined by the department, the members

 

of the district board receive department-approved training that

 

covers at least all of the following:

 

     (A) The responsibilities of the board and the district

 

superintendent.

 

     (B) The requirements of the open meetings act, 1976 PA 267,

 

MCL 15.261 to 15.275.

 

     (C) Conflicts of interest.

 

     (D) School finance and school budgeting.

 

     (E) Contracts and negotiations.

 

     (F) The process of data-driven decision making and policy

 

development.

 

     (iii) The district maintained an ending general fund balance


greater than 5% of operating expenditures for the immediately

 

preceding fiscal year as determined by the department.

 

     (b) Meets the requirements of at least 2 of the following

 

academic best practices:

 

     (i) The district administers a department-approved

 

kindergarten entry assessment that assesses English language arts

 

and mathematics skills of all first-time kindergarten pupils

 

enrolling in the district. The assessment shall be administered by

 

the district using a method and time frame determined by the

 

department.

 

     (ii) The district administers department-approved diagnostic

 

tools to monitor the development of early literacy and early

 

reading skills of pupils in grades K to 3, and supports research-

 

based professional development for educators in data interpretation

 

for the purpose of implementing a multi-tiered system of support to

 

improve grade 3 reading proficiency. The diagnostic tools and

 

professional development shall be used by the district to identify

 

pupils who need additional support and to offer research-based

 

interventions.

 

     (iii) The district assesses the effectiveness of current

 

college and career advising programs within the district by

 

reviewing pupil-to-counselor ratios, the time dedicated to college-

 

and career-readiness counseling as opposed to noncounseling tasks,

 

and the amount of professional development offered to college- and

 

career-readiness advisors, and, based on this self-assessment, the

 

district develops a plan to address deficiencies according to

 

standards recommended by the Michigan college access network and


the Michigan School Counselor Association based on the

 

comprehensive school counseling program adopted by the department.

 

     (iv) The district offers credit recovery opportunities for

 

eligible students in grades 9 to 12 who are at risk of not meeting

 

credit requirements for graduating on time.

 

     (3) If the department determines that a district has

 

intentionally submitted false information in order to qualify for

 

an incentive payment under this section, the district forfeits an

 

amount equal to the amount it received under this section from its

 

total state school aid for 2015-2016.2016-2017.

 

     (4) If the department determines that funds allocated under

 

this section will remain unexpended after the initial allocation of

 

$50.00 $20.00 per-pupil to eligible districts under subsection (2),

 

the remaining unexpended amount is allocated on an equal per-pupil

 

basis to districts that meet the requirements of subsection (2) and

 

that have a foundation allowance, as calculated under section 20,

 

in an amount that is less than the basic foundation allowance under

 

that section.

 

     Sec. 22i. (1) From the funds appropriated in section 11, there

 

is allocated for 2013-2014 an amount not to exceed $45,000,000.00

 

and there is allocated for 2014-2015 2015-2016 an amount not to

 

exceed $41,500,000.00 $25,000,000.00 for the technology readiness

 

infrastructure grant program for districts or intermediate

 

districts on behalf of their constituent districts. Funds received

 

under this subsection section shall be used for the development or

 

improvement of a district's districts' technology hard

 

infrastructure, the shared services consolidation of technology and


data , and for the coordination and strategic purchasing of

 

hardware and software in preparation for the planned implementation

 

in 2014-2015 of online assessments.delivery of assessments through

 

online models.

 

     (2) The Subject to the requirements of this section, the

 

department shall develop a competitive application process and

 

method of grant distribution to eligible districts and intermediate

 

districts that demonstrate need for grants under subsection (1).

 

The department may consult with the department of technology,

 

management, and budget during the grant process and grant

 

distribution. Grants to districts shall not exceed $2,000,000.00

 

per district. A grant to an intermediate district on behalf of its

 

constituent districts shall not exceed $2,000,000.00 per

 

constituent district. To receive a grant under subsection (1), an

 

intermediate district shall demonstrate that a grant awarded to the

 

intermediate district on behalf of its constituent districts would

 

provide savings compared to providing grants to individual

 

districts. Added consideration shall be given to applicants that

 

propose external partnerships and articulate plans for

 

sustainability beyond the grant funding.

 

     (3) From the general fund money appropriated in section 11,

 

there is allocated an amount not to exceed $5,000,000.00 for 2013-

 

2014 to be awarded through a competitive bid process to a single

 

provider of whole-school technology as described in this

 

subsection. The department shall issue a single request for

 

proposal with application rules written and administered by the

 

department, and with a focus on economic and geographic diversity.


To be eligible to receive the grant under this section, a provider

 

shall meet all of the following:

 

     (a) Agrees to submit evaluation criteria in a form and manner

 

determined by the department.

 

     (b) Provides at least all of the following:

 

     (i) One-to-one mobile devices.

 

     (ii) Laptop or desktop computers for each classroom.

 

     (iii) On- and off-campus filtering.

 

     (iv) Wireless networks and peripherals.

 

     (v) Wireless audio equipment.

 

     (vi) Operating software.

 

     (vii) Instructional software.

 

     (viii) Repairs and replacements.

 

     (ix) Professional development.

 

     (x) Ongoing support.

 

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

 

allocated an amount not to exceed $12,000,000.00 for district

 

participation incentives as described in this subsection. Grants

 

awarded under this subsection shall be distributed on an equal per

 

pupil basis, not to exceed $10.00 per pupil. To receive funding

 

under this subsection, a district must meet all of the following:

 

     (a) The district agrees to limit the spending of participation

 

incentive grants toward technology readiness efforts, including,

 

but not limited to, the following:

 

     (i) Online or digital assessment, including universal

 

diagnostic screening tools.

 

     (ii) In-building wireless connectivity.


     (iii) Network services, such as additional bandwidth and

 

content filtering.

 

     (iv) Computer or device purchasing.

 

     (v) Technology readiness for instruction and data

 

collaborations that support online assessment readiness.

 

     (b) The district agrees to be represented in the program known

 

as "TRIG sponsored statewide 470 bids for E-rate funding" and to

 

consider using the awarded vendors. However, the district will not

 

be obligated to purchase from that bid or those vendors.

 

     (c) The district agrees to participate in any survey or data

 

collection process considered necessary by the department.

 

     (d) The district ensures that its intermediate district also

 

agrees to requirements of subdivisions (a) to (c) for the district

 

to receive participation funds.

 

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

 

allocated an amount not to exceed $10,000,000.00 for device

 

purchasing incentives.

 

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

 

allocated an amount not to exceed $2,200,000.00 for data systems

 

integration.

 

     (6) From the money allocated in subsection (1), there is

 

allocated an amount not to exceed $300,000.00 for E-rate

 

activities.

 

     (7) From the money allocated in subsection (1), there is

 

allocated an amount not to exceed $500,000.00 for administration of

 

the technology readiness infrastructure grant program.

 

     (8) Not later than January 1, 2017, the department shall


consolidate and prepare a summary from the total project reports

 

from each grantee under this section to include measurable outcomes

 

based on grant objectives. The report will include a summary of

 

compiled data from each grantee to provide a means to evaluate the

 

effectiveness of the grant project. The report shall be delivered

 

to the house and senate appropriations subcommittees on state

 

school aid and on the department budget and to the house and senate

 

fiscal agencies.

 

     (9) (4) The funds allocated under subsection (1) are a work

 

project appropriation. Any unexpended funds for 2013-2014 are

 

carried forward into 2014-2015 and any unexpended funds for 2014-

 

2015 are carried forward into 2015-2016. The purpose of the work

 

project is to continue to implement the projects described under

 

this section. The estimated completion date of the work project is

 

September 30, 2016.2015-2016 shall lapse to the state school aid

 

fund.

 

     (10) From the funds appropriated under this article, the

 

department shall not contract for or pay for a contract that

 

creates informational technology infrastructure that is owned or

 

operated by this state, a local unit of government, a community

 

college or state public university, or a district or intermediate

 

district, and is operated in a manner that provides informational

 

technology services to public entities in competition with

 

businesses located in this state.

 

     (11) As used in this section:

 

     (a) "Hard infrastructure" means technology hardware necessary

 

to move to an online learning and testing environment, including,


but not limited to, fiber, servers, wireless computing networks,

 

and necessary peripherals.

 

     (b) "Shared services consolidation of technology and data"

 

means projects that support the move to a collaborative multiple

 

organizational approach to managing hardware, software,

 

peripherals, and data integration and display of appropriate

 

information for parents, teachers, administrators, and this state.

 

     Sec. 23a. (1) A dropout recovery program operated by a

 

district qualifies for the special membership counting provisions

 

of section 6(4)(ff) 6(4)(DD) and the hours and day of pupil

 

instruction exemption under section 101(12) if the dropout recovery

 

program meets all of the following:

 

     (a) Enrolls only eligible pupils.

 

     (b) Provides an advocate. An advocate may serve in that role

 

for more than 1 pupil but no more than 50 pupils. An advocate may

 

be employed by the district or may be provided by an education

 

management organization that is partnering with the district.

 

Before an individual is assigned to be an advocate for a pupil in

 

the dropout recovery program, the district shall comply with

 

sections 1230 and 1230a of the revised school code, MCL 380.1230

 

and 380.1230a, with respect to that individual.

 

     (c) Develops a written learning plan.

 

     (d) Monitors the pupil's progress against the written learning

 

plan.

 

     (e) Requires each pupil to make satisfactory monthly progress,

 

as defined by the district under subsection (2).

 

     (f) Reports the pupil's progress results to the partner


district at least monthly.

 

     (g) The program may be operated on or off a district school

 

campus, but may be operated using distance learning online only if

 

the program provides a computer and internet access for each

 

eligible pupil participating in the program.

 

     (h) Is operated throughout the entire calendar year.

 

     (i) If the district partners with an education management

 

organization for the program, the education management organization

 

has a dropout recovery program partnership relationship with at

 

least 1 other district.

 

     (2) A district operating a dropout recovery program under this

 

section shall adopt a definition of satisfactory monthly progress

 

that is consistent with the definition of that term under

 

subsection (3).

 

     (3) As used in this section:

 

     (a) "Advocate" means an adult available to meet in person with

 

assigned pupils, as needed, to conduct social interventions, to

 

proctor final examinations, and to provide academic and social

 

support to pupils enrolled in the district's dropout recovery

 

program.

 

     (b) "Education management organization" means a private

 

provider that operates 1 or more other dropout recovery programs

 

that meet the requirements of this section in partnership with 1 or

 

more districts.

 

     (c) "Eligible pupil" means a pupil who has been expelled from

 

school under the mandatory expulsion provisions in section 1311 or

 

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


pupil who has been suspended or expelled from school under a local

 

policy, a pupil who is referred by a court, a pupil who is pregnant

 

or is a parent, a pupil who was previously a dropout, or a pupil

 

who is determined by the district to be at risk of dropping out.

 

     (d) "Satisfactory monthly progress" means an amount of

 

progress that is measurable on a monthly basis and that, if

 

continued for a full 12 months, would result in the same amount of

 

academic credit being awarded to the pupil as would be awarded to a

 

general education pupil completing a full school year. Satisfactory

 

monthly progress may include a lesser required amount of progress

 

for the first 2 months a pupil participates in the program.

 

     (e) "Written learning plan" means a written plan developed in

 

conjunction with the advocate that includes the plan start and end

 

dates, courses to be taken, credit to be earned for each course,

 

teacher of record for each course, and advocate name and contact

 

information.

 

     Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$8,000,000.00 for payments to the educating district or

 

intermediate district for educating pupils assigned by a court or

 

the department of human services to reside in or to attend a

 

juvenile detention facility or child caring institution licensed by

 

the department of 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

 

human services to reside in or to attend a juvenile detention

 

facility or child caring institution licensed by the department of

 

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 $2,195,500.00 for 2014-2015

 

$2,189,800.00 for 2015-2016 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities

 

operated by the department of 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 human services to ensure that all

 

funding allocated under this section is utilized by the

 

intermediate district and department of 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 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 $1,500,000.00 for 2014-2015

 

$1,497,400.00 for 2015-2016 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. 25e. (1) The pupil membership transfer application and

 

pupil transfer process administered by the center under this

 

section shall be used for processing pupil transfers.

 

     (2) If a pupil counted in membership for the pupil membership

 

count day transfers from a district or intermediate district to

 

enroll in another district or intermediate district after the pupil

 

membership count day and before the supplemental count day and, due

 

to the pupil's enrollment and attendance status as of the pupil

 

membership count day, the pupil was not counted in membership in

 

the educating district or intermediate district, the educating


district or intermediate district may report the enrollment and

 

attendance information to the center through the pupil transfer

 

process within 30 days after the transfer or within 30 days after

 

the pupil membership count certification date, whichever is later.

 

Pupil transfers may be submitted no earlier than the first day

 

after the certification deadline for the pupil membership count day

 

and before the supplemental count day. Upon receipt of the transfer

 

information under this subsection indicating that a pupil has

 

enrolled and is in attendance in an educating district or

 

intermediate district as described in this subsection, the pupil

 

transfer process shall do the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district is located and the pupil

 

auditing staff of the intermediate district in which the district

 

that previously enrolled the pupil is located. The pupil auditing

 

staff shall investigate a representative sample based on required

 

audit sample sizes in the pupil auditing manual and may deny the

 

pupil membership transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to a change in the


pupil's enrollment and attendance so that the district's or

 

intermediate district's membership is prorated to allow the

 

district or intermediate district to receive for each school day,

 

as determined by the financial calendar furnished by the center, in

 

which the pupil was enrolled and in attendance in the district or

 

intermediate district an amount equal to 1/105 of a full-time

 

equated membership claimed in the fall pupil membership count. The

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the district or intermediate

 

district multiplied by the foundation allowance or per-pupil

 

payment as calculated under section 20 for the district or

 

intermediate district. The foundation allowance or per-pupil

 

payment shall be adjusted by the pupil's full-time equated status

 

as affected by the membership definition under section 6(4).

 

     (b) Adjust the membership calculation for the educating

 

district or intermediate district in which the pupil is enrolled

 

and is in attendance so that the district's or intermediate

 

district's membership is increased to allow the district or

 

intermediate district to receive an amount equal to the difference

 

between the full-time equated membership claimed in the fall pupil

 

membership count and the sum of the adjustments calculated under

 

subdivision (a) for each district or intermediate district in which

 

the pupil was previously enrolled and in attendance. The educating

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the educating district or


intermediate district multiplied by the foundation allowance or

 

per-pupil payment as calculated under section 20 for the educating

 

district or intermediate district. The foundation allowance or per-

 

pupil payment shall be adjusted by the pupil's full-time equated

 

status as affected by the membership definition under section 6(4).

 

     (4) The changes in calculation of state school aid required

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the

 

affected districts or intermediate districts on this recalculation

 

of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

intermediate district as described in subsection (2), the district

 

or intermediate district in which the pupil is counted in

 

membership or another educating district or intermediate district

 

that received an adjustment in its membership calculation under

 

subsection (3), if any, and the educating district or intermediate

 

district shall provide to the center and the department all

 

information they require to comply with this section.

 

     (6) Not later than December 1, 2014, the center in conjunction

 

with the department shall report to the legislature data related to

 

the implementation of this section, including, but not limited to,

 

the number of transfer transactions and the net change in pupil

 

memberships in 2013-2014 by district and intermediate district.

 

     (6) (7) The portion of the full-time equated pupil membership

 

for which a pupil is enrolled in 1 or more online courses under


section 21f shall not be counted or transferred under the pupil

 

transfer process under this section.

 

     (7) The center shall determine the number of pupils who did

 

not reside in this state as of the 2015-2016 pupil membership count

 

day, but who newly enrolled in a district or intermediate district

 

after that pupil membership count day and before the 2015-2016

 

supplemental count day. The center shall further determine the

 

number of pupils who were counted in membership for the 2015-2016

 

pupil membership count day, but who left this state before the

 

2015-2016 supplemental count day. The center shall provide a report

 

to the senate and house appropriations subcommittees on school aid,

 

and to the senate and house fiscal agencies, detailing the number

 

of pupils transferring in from another state or transferring out

 

from this state between the pupil membership count day and

 

supplemental count day as described in this subsection. The center

 

shall include in the report a discussion of benefits and obstacles

 

to developing a pupil enrollment process for pupils who newly

 

enroll in a district or intermediate district after the pupil

 

membership count day and before the supplemental count day, and

 

developing a process for deducting pupils who were counted on the

 

pupil membership count day and transfer out of this state before

 

the supplemental count day.

 

     (8) As used in this section:

 

     (a) "Educating district or intermediate district" means the

 

district or intermediate district in which a pupil enrolls after

 

the pupil membership count day or after an adjustment was made in

 

another district's or intermediate district's membership


calculation under this section due to the pupil's enrollment and

 

attendance.

 

     (b) "Pupil" means that term as defined under section 6 and

 

also children receiving early childhood special education programs

 

and services.

 

     Sec. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $2,000,000.00 for 2014-2015 $1,500,000.00 for 2015-2016 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 and for the purposes

 

described in subsection (5).

 

     (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) Not later than June 30, 2015, a strict discipline academy

 

shall report to the center and to the department, in a manner

 

prescribed by the center and the department, the following

 

information for 2014-2015:

 

     (a) The number of pupils enrolled and in attendance at the

 

strict discipline academy.

 

     (b) The number of days each pupil enrolled was in attendance

 

at the strict discipline academy, not to exceed 180.

 

     (4) The amount of the payment to a strict discipline academy

 

under this section shall be an amount equal to the difference

 

between the product of 1/180 of the per-pupil payment as calculated


under section 20 for the strict discipline academy multiplied by

 

the number of days of pupil attendance reported under subsection

 

(3)(b) minus the product of the per-pupil payment as calculated

 

under section 20 for the strict discipline academy multiplied by

 

the pupils in membership at the strict discipline academy as

 

calculated under section 6 and as adjusted by section 25e.

 

     (3) Except for the amount paid under subsection (5), the total

 

amount allocated to a strict discipline academy under this section

 

is an amount equal to the lesser of the strict discipline academy's

 

added cost or the department's approved per-pupil allocation for

 

the strict discipline academy. 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, authorizer 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 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 subsection in an amount equal

 

to that portion multiplied by the educating district's foundation

 

allowance or per-pupil payment calculated under section 20.

 

     (6) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsections (4) (3) and (5),

 

payments under this section shall be prorated on an equal per-pupil

 

basis.

 

     (7) 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 $26,300,000.00 for 2014-2015

 

2015-2016 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 2014. 2015. 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 2014-2015 2015-2016 an amount not to exceed

 

$4,210,000.00 $4,276,800.00 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 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 $293,100.00 for 2014-2015

 

$610,000.00 for 2015-2016 to the promise zone fund created in

 

subsection (3).

 

     (2) Funds allocated to the promise zone fund under this


section shall be used solely for payments to eligible districts and

 

intermediate districts 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.

 

     (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.

 

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

 

appropriated in section 11, there is allocated for 2014-2015 2015-

 

2016 an amount not to exceed $317,695,500.00 $417,695,500.00 for

 

payments to eligible districts, eligible public school academies,

 

and the education achievement system for the purposes of ensuring

 

that pupils are proficient in reading by the end of grade 3 and


that high school graduates are career and college ready and for the

 

purposes under subsections (6) and (7). A district that receives an

 

increase in funding under this section from 2014-2015 to 2015-2016

 

and that educates pupils in grades K to 3 shall ensure that at

 

least 50% of the total amount of that increased funding is spent

 

for the purpose of ensuring that pupils are proficient in reading

 

by the end of grade 3.

 

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

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (6) or (7), the sum of

 

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

 

achievement system's combined state and local revenue per

 

membership pupil in the current state fiscal year, as calculated

 

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

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

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

 

eligible district or eligible public school academy or the

 

education achievement system shall receive under this section for

 

each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

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

 

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

 

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

 

prescribed by the department not later than the fifth Wednesday

 

after the pupil membership count day of the immediately preceding

 

fiscal year and adjusted not later than December 31 of the


immediately preceding fiscal year, an amount per pupil equal to

 

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

 

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

 

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

 

foundation allowance under section 20 for the current state fiscal

 

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

 

achievement system's per membership pupil amount calculated under

 

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

 

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

 

an achievement school that began operations as an achievement

 

school, after the pupil membership count day of the immediately

 

preceding school year shall receive under this section for each

 

membership pupil in the public school academy or in the education

 

achievement system who met the income eligibility criteria for free

 

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

 

Russell national school lunch act and as reported to the department

 

not later than the fifth Wednesday after the pupil membership count

 

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

 

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

 

of the public school academy's or the education achievement

 

system's per membership pupil amount calculated under section 20

 

for the current state fiscal year.

 

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

 

or public school academy, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical, mental health, or


counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (5), (6), (7), or (10). 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 met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding state fiscal

 

year, as determined and reported as described in subsection (3), or

 

the education achievement system if it meets this requirement, may

 

use not more than 20% of the funds it receives under this section

 

for school security. A district, the public school academy, or the

 

education achievement system shall not use any of that money for

 

administrative costs. The instruction or direct noninstructional

 

services provided under this section may be conducted before or

 

after regular school hours or by adding extra school days to the

 

school year.

 

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

 

under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a, or

 

the education achievement system if it operates a school breakfast

 

program, shall use from the funds received under this section an

 

amount, not to exceed $10.00 per pupil for whom the district or

 

public school academy or the education achievement system receives

 

funds under this section, necessary to pay for costs associated

 

with the operation of the school breakfast program.

 

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

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$3,557,300.00 to support child and adolescent health centers. These


grants shall be awarded for 5 consecutive years beginning with

 

2003-2004 in a form and manner approved jointly by the department

 

and the department of community health. Each grant recipient shall

 

remain in compliance with the terms of the grant award or shall

 

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

 

the noncompliance. To continue to receive funding for a child and

 

adolescent health center under this section a grant recipient shall

 

ensure that the child and adolescent health center has an advisory

 

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

 

advisory committee are parents or legal guardians of school-aged

 

children. A child and adolescent health center program shall

 

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

 

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

 

subsection shall be used to support child and adolescent health

 

center services provided to children up to age 21. If any funds

 

allocated under this subsection are not used for the purposes of

 

this subsection for the fiscal year in which they are allocated,

 

those unused funds shall be used that fiscal year to avoid or

 

minimize any proration that would otherwise be required under

 

subsection (14) for that fiscal year. In addition to the funds

 

otherwise allocated under this subsection, from the money allocated

 

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

 

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

 

centers to increase access to nurses and behavioral health services

 

in schools, using 2 existing school clinics as hubs for services

 

and using mobile teams to serve satellite school sites.

 

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


allocated for 2014-2015 2015-2016 an amount not to exceed

 

$5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code,

 

1978 PA 368, MCL 333.9301. A local public health department shall

 

pay at least 50% of the total cost of the screenings. The frequency

 

of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

administrative code. Funds shall be awarded in a form and manner

 

approved jointly by the department and the department of community

 

health. Notwithstanding section 17b, payments to eligible entities

 

under this subsection shall be paid on a schedule determined by the

 

department.

 

     (8) Each district or public school academy receiving funds

 

under this section and the education achievement system shall

 

submit to the department by July 15 of each fiscal year a report,

 

not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under

 

this section, which report shall include a brief description of

 

each program conducted or services performed by the district or

 

public school academy or the education achievement system using

 

funds under this section, the amount of funds under this section

 

allocated to each of those programs or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of human

 

services to verify matching funds for the temporary assistance for

 

needy families program. If a district or public school academy or

 

the education achievement system does not comply with this


subsection, the department shall withhold an amount equal to the

 

August payment due under this section until the district or public

 

school academy or the education achievement system complies with

 

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

 

education achievement system does not comply with this subsection

 

by the end of the state fiscal year, the withheld funds shall be

 

forfeited to the school aid fund.

 

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

 

or public school academy or the education achievement system shall

 

allow access for the department or the department's designee to

 

audit all records related to the program for which it receives

 

those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.

 

     (10) Subject to subsections (5), (6), and (7), a district may

 

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

 

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

 

pupils identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

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

 

section 296, the department shall prorate payments under this

 

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

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils


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

 

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

 

subsection (3).

 

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

 

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

 

eligible before the consolidation for an additional allowance under

 

this section, the amount of the additional allowance under this

 

section for the consolidated district shall be based on the number

 

of pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that

 

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

 

milk, as described under subsection (3), 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.

 

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

 

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

 

the following criteria:

 

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

 

     (b) Is a pregnant teenager or teenage parent.

 

     (c) Has a family history of school failure, incarceration, or


substance abuse.

 

     (d) For pupils for whom the results of the Michigan merit

 

examination state summative assessment have been received, is a

 

pupil who does not meet the other criteria under this subsection

 

but who did not achieve proficiency on the reading, writing,

 

English language arts, mathematics, science, or social studies

 

components of the most recent Michigan merit examination for which

 

results for the pupil have been received. content area assessment.

 

     (e) For pupils in grades K-3, is Is a pupil who is at risk of

 

not meeting the district's core academic curricular objectives in

 

English language arts or mathematics, as demonstrated on local

 

assessments.

 

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

 

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

 

2001 flexibility waiver approved by the United States department of

 

education.Department of Education.

 

     (g) The pupil did not achieve a score of at least proficient

 

on 2 or more state-administered assessments for English language

 

arts, mathematics, science, or social studies.

 

     (h) For high school pupils in grades not assessed by the

 

state, the pupil did not receive a satisfactory score on 2 or more

 

end-of-course examinations that are aligned with state standards in

 

English language arts, mathematics, science, or social studies. For

 

middle school pupils in grades not assessed by the state, the pupil

 

did not receive a satisfactory score on 2 or more end-of-semester

 

or end-of-trimester examinations that are aligned with state

 

standards in science or social studies. For pupils in the


elementary grades in grades and subjects not assessed by the state,

 

the pupil did not receive a satisfactory score or did not have a

 

satisfactory outcome on 2 or more interim assessments in English

 

language arts, mathematics, science, or social studies.

 

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

 

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

 

a form and manner approved by the department:

 

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

 

lunch, or milk.

 

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

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

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

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (14) Beginning in 2014-2015, if If a district, public school

 

academy, or the education achievement system does not demonstrate

 

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

 

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

 

by the state assessment and demonstrate to the satisfaction of the

 

department improvement over 3 consecutive years in the percentage

 

of at-risk pupils that are career- and college-ready as measured by

 

the pupil's score on each of the individual subject areas on the


college entrance examination portion of the Michigan merit

 

examination determined by proficiency on the English language arts,

 

mathematics, and science content area assessments on the grade 11

 

summative assessment under section 1279g(2)(a) of the revised

 

school code, MCL 380.1279g, the district, public school academy, or

 

education achievement system shall ensure all of the following:

 

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

 

achievement system shall determine the proportion of total at-risk

 

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

 

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

 

public school academy, or the education achievement system shall

 

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

 

funds under this section on tutoring and other methods of improving

 

grade 3 reading levels.

 

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

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on

 

each of the individual subject areas on the college entrance

 

examination portion of the Michigan merit examination the English

 

language arts, mathematics, and science content area assessments on

 

the grade 11 summative assessment under section 1279g(2)(a) of the

 

revised school code, MCL 380.1279g, and the district, public school

 

academy, or the education achievement system shall expend that same

 

proportion multiplied by 1/2 of its total at-risk funds under this

 

section on tutoring and other activities to improve scores on the

 

college entrance examination portion of the Michigan merit


examination.

 

     (15) As used in subsection (14), "total at risk pupils" means

 

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

 

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

 

assessment and the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on

 

each of the individual subject areas on the college entrance

 

examination portion of the Michigan merit examination 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.

 

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

 

under this section or the education achievement system may use

 

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

 

crisis intervention program.

 

     (17) The department shall collaborate with the department of

 

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not reading at grade

 

level.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2014-2015

 

2015-2016 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, Michigan supreme court docket no.

 

104458-104492.

 

     (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 2014-2015 2015-2016 all available federal funding,

 

estimated at $510,000,000.00 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 $5,625,000.00 for 2014-2015 2015-

 

2016 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. 31h. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $350,000.00 for 2015-2016 for the

 

purpose of providing funding to a district that educates high

 

school pupils from another district that voluntarily closed its

 

high school program in 2013. The funding under this section is

 

intended to be for the first of 2 years, unless it is determined

 

that the federal elementary and secondary education act allows

 

federal title I funds that previously supported the high school

 

pupils in their resident district to instead be provided to the

 

educating district. Funding under this section shall be used to

 

support the additional costs of educating high school pupils in a

 

manner that is similar to the way title I funds provided additional

 

support to the education of those pupils when they were educated in

 

their resident district high school program before its closure in

 

2013.

 

     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 $214,275,000.00 for 2014-2015. In addition, from the

 

funds appropriated in section 11, there is allocated to the great

 

start readiness reserve fund created under subsection (19) an

 

amount not to exceed $25,000,000.00 for 2014-2015. $239,275,000.00

 

for 2015-2016. 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 the date specified for determining a

 

child's eligibility to attend school under section 1147 of the

 

revised school code, MCL 380.1147. However, if a program would

 

otherwise have to return funding for slots due to insufficient

 

class size, the program may enroll children who are at least 3

 

years of age, and who meet the income eligibility criteria, in

 

addition to the eligible children who are at least 4, but less than

 

5, years of age.

 

     (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 2014-2015 2015-

 

2016 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.

 

     (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 under section 39(1)(d)

 

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.

 

     (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 degree in child development or

 

early child development 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 development, 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 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

school-day program.

 

     (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

 

subsection (4).

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 2% of that portion of the grant amount and


the subrecipients engaged by the intermediate district to provide

 

program services may retain for administrative services an amount

 

equal to not more than 5% of that portion of the grant amount.

 

     (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 under

 

section 39(1)(d) 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.

 

     (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 pay to the educating intermediate

 

district or consortium the per-child amount attributable to each

 

child enrolled pursuant to this sentence, as determined under

 

section 39.

 

     (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 slot 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 slot 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 slot 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 slot allocation and was not

 

able to do so, then the intermediate district or consortium may

 

retain and use all of its allocated slots 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 slot 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 slot 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

 

licensed child care center located in the service area of the

 

intermediate district or consortium at least twice regarding the

 

center's eligibility to participate. One of these notifications may

 

be made electronically, but at least 1 of these notifications shall

 

be made via hard copy through the United States mail. At least 1 of

 

these notifications shall be made within 7 days after the

 

intermediate district or consortium receives notice from the

 

department of its slot allocations.

 

     (b) The intermediate district or consortium provided to each

 

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 slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated 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 slot allocation awarded to community-based

 

providers and 30% of its total slot 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 slot 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 November 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (10) 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

 

slot 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 in a form and manner prescribed by the department

 

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 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 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. A grant recipient shall

 

charge tuition according to that sliding scale of tuition rates on

 

a uniform basis for any child who does not meet the income

 

eligibility requirements under this section.


     (19) The great start readiness reserve 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. Money

 

available in the great start readiness reserve fund may not be

 

expended for 2014-2015 unless transferred by the legislature not

 

later than December 15, 2014 to the allocation under subsection (1)

 

for great start readiness programs. Money in the great start

 

readiness reserve fund shall be expended only for purposes for

 

which state school aid fund money may be expended. The state

 

treasurer shall direct the investment of the great start readiness

 

reserve fund. The state treasurer shall credit to the great start

 

readiness reserve fund interest and earnings from fund investments.

 

Money in the great start readiness reserve fund at the close of a

 

fiscal year shall remain in the great start readiness reserve fund

 

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

 

the general fund.

 

     (19) (20) 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,

 

2014, 2015, 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 the lesser of the projected transportation

 

budget or $150.00 multiplied by the number of slots 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 slot 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.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$10,900,000.00 $15,900,000.00 to intermediate districts for 2014-

 

2015 2015-2016 for the purpose of providing early childhood funding

 

to intermediate school districts in block grants, supporting to

 

support the activities under subsection (2) and subsection (4), and

 

providing 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 and child advocacy.

 

     (e) Early education and care.

 

     (4) From the funds allocated in subsection (1), at least

 

$5,000,000.00 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,

 

reduce the number of pupils retained in grade level, and reduce the

 

number of pupils requiring special education services. 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.

 

     (5) (4) 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) (5) 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. 35. (1) The funds allocated under sections 35a to 35g

 

shall be used for programs to ensure children are reading at grade

 

level by the end of grade 3. The superintendent shall designate

 

staff or contracted employees funded under these sections as

 

critical shortage. Programs funded under these sections 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 by 2025.

 

     (2) From the general fund appropriation in section 11, there

 

is allocated to the department an amount not to exceed

 

$1,000,000.00 for 2015-2016 for implementation costs associated

 

with programs in sections 35a to 35g.

 

     (3) From the amount allocated under subsection (2), there is

 

allocated an amount not to exceed $100,000.00 for the purpose of

 

performing an evaluation of the pilot programs under section 35a in

 

a manner approved by the department. The evaluation report shall

 

include at least the following:

 

     (a) A description of the components of the pilot programs that

 

were effective in helping parents prepare their children for

 

success in school.

 

     (b) A description of any barriers that parents and their

 

children encountered that precluded them from participating in the

 

pilot programs.


     (c) An assessment of whether these pilot programs should be

 

expanded to other locations in the state.

 

     Sec. 35a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,000,000.00 for 2015-2016 for

 

the purpose of conducting parent education pilot programs for

 

parents of children less than 4 years of age so that children are

 

developmentally ready to succeed in school at the time of school

 

entry.

 

     (2) The department shall develop a competitive application

 

process and method of grant distribution consistent with the

 

provisions of this section. The amount of a grant award to a pilot

 

program shall be an amount equal to the number of resident children

 

younger than 4 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, in the district or

 

consortium of districts operating the program multiplied by $120.00

 

per child or $130,000.00, whichever is less. The department shall

 

ensure that grants are awarded in each prosperity region or

 

subregion.

 

     (3) An application for a competitive grant under this section

 

shall be submitted by an intermediate district on behalf of a

 

district or consortium of districts within the intermediate

 

district. The application shall be submitted in a form and manner

 

approved by the department and shall contain at least the following

 

components:

 

     (a) A description of the program design including the names of

 

the district or consortium of districts that will operate the


program, the physical location of the program, and the anticipated

 

number of families that will be served.

 

     (b) An assurance that the program will be supervised by a

 

teacher who has a valid teaching certificate with an early

 

childhood (ZA or ZS) endorsement, a valid teaching certificate in

 

career education with both a KH and VH endorsement, a bachelor's

 

degree in child development or early child development, or a

 

bachelor's degree related to adult learning.

 

     (c) An estimate of the number of families in the district or

 

districts that will operate the pilot program that have at least 1

 

child less than 4 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.

 

     (d) A description of the public awareness and outreach efforts

 

that will be made.

 

     (e) An assurance that the intermediate district and the

 

district or consortium of districts operating the program will

 

provide information in a form and manner as approved by the

 

department to allow for an evaluation of the pilot projects.

 

     (f) A description of the sliding fee scale that will be

 

established for tuition, with fees reduced or waived for those

 

unable to pay.

 

     (g) A budget for the program. A program may use not more than

 

5% of a grant to administer the program.

 

     (4) To be eligible for a grant under this section, a program

 

shall provide at least 2 hours per week throughout the school year

 

for parents and their eligible children to participate in parent


education programs and meet at least the following minimum

 

requirements:

 

     (a) Require that parents be physically present in classes with

 

their children or be in concurrent classes.

 

     (b) Use research-based information to educate parents about

 

the physical, cognitive, social, and emotional development of

 

children.

 

     (c) Provide structured learning activities requiring

 

interaction between children and their parents.

 

     (d) Provide structured learning activities for children that

 

promote positive interaction with their peers.

 

     (5) For a child to be eligible to participate in a program

 

under this section, the child shall be less than 4 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.

 

     Sec. 35b. (1) from the appropriation in section 11, there is

 

allocated an amount not to exceed $950,000.00 for 2015-2016 for the

 

purposes of this section. This allocation represents the first of 2

 

years of funding for the purposes of this section.

 

     (2) The department shall award grants to districts to support

 

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 department shall

 

determine the amount of the grant awards.

 

     (3) In addition to other methods of professional development

 

delivery, the department shall collaborate with the Michigan


Virtual University to provide this training online to all educators

 

of pupils in grades K to 3.

 

     (4) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2015-2016 are carried

 

forward into 2016-2017. The purpose of the work project is to

 

continue to implement the professional development training

 

described in this section. The estimated completion date of the

 

work project is September 30, 2017.

 

     Sec. 35d. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,450,000.00 for 2015-2016 for

 

grants under this section. This allocation represents the first of

 

2 years of funding.

 

     (2) The department shall award grants to districts to

 

administer department-approved 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 data interpretation for the purpose of

 

implementing a multi-tiered system of support to improve reading

 

proficiency among pupils in grades K to 3. The department shall

 

award grants to eligible districts in an amount determined by the

 

department.

 

     (3) In addition to other methods of professional development

 

delivery, the department shall collaborate with the Michigan

 

Virtual University to provide this training online to all educators

 

of pupils in grades K to 3.

 

     (4) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2015-2016 are carried


forward into 2016-2017. The purpose of the work project is to

 

continue to implement the professional development training

 

described in this section. The estimated completion date of the

 

work project is September 30, 2017.

 

     Sec. 35e. (1) from the appropriation in section 11, there is

 

allocated an amount not to exceed $3,000,000.00 for the purpose of

 

providing early literacy coaches 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.

 

     (2) The department shall develop a competitive application

 

process and method of grant distribution consistent with the

 

provisions of this section. The grant process shall ensure that

 

intermediate districts with the highest percentage of pupils in

 

grade 4 in constituent districts who are not proficient on the

 

grade 4 state reading assessment receive extra consideration in the

 

awarding of grants.

 

     (3) In order to receive funding under this section, a

 

consortium of intermediate districts in a prosperity region or

 

subregion shall submit a competitive grant application in a form

 

and manner approved by the department. An application shall provide

 

assurances that literacy coaches funded under this section are

 

knowledgeable about at least the following:

 

     (a) Current state literacy standards for pupils in grades K to

 

3.

 

     (b) Implementing an instructional delivery model based on

 

frequent use of formative 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.

 

     (c) 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.

 

     (4) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2015-2016 are carried

 

forward into 2016-2017. The purpose of the work project is to

 

continue to provide early literacy coaches as described in this

 

section. The estimated completion date of the work project is

 

September 30, 2017.

 

     Sec. 35f. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $19,650,000.00 from the state

 

school aid fund money and $350,000.00 from the general fund money

 

for 2015-2016 to districts that provide additional instructional

 

time to those pupils in grades K to 3 who have been identified by

 

using department-approved diagnostic tools as needing additional

 

supports and interventions in order to be reading at grade level by

 

the end of grade 3, and for the purposes identified in subsection

 

(4). Additional instructional time may be provided before, during,

 

and after regular school hours or as part of a year-round balanced

 

school calendar.

 

     (2) In order to be eligible to receive funding under this

 

section, a district shall demonstrate to the satisfaction of the

 

department that the district has done all of the following:

 

     (a) Implemented a multi-tiered system of support instructional


delivery model.

 

     (b) Used department-approved research-based diagnostic tools

 

to identify individual pupils in need of additional instructional

 

time.

 

     (c) Provided teachers of pupils in grades K to 3 with

 

research-based professional development in diagnostic data

 

interpretation.

 

     (3) Funding allocated under this section from the state school

 

aid fund shall be distributed to eligible districts by multiplying

 

the number of full-time-equivalent pupils in grade 1 in the

 

district by $190.00.

 

     (4) From the general fund money appropriated in subsection

 

(1), the department shall allocate not less than $350,000.00 for

 

2015-2016 to the Michigan Education Corps.

 

     (5) The Michigan Education Corps shall provide a report by

 

August 1, 2016 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:

 

     (a) 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.

 

     (b) 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.

 

     (c) 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:

 

     (i) Growth rate by grade level, in comparison to targeted

 

growth rate.

 

     (ii) Average linear growth rates.

 

     (iii) Exit rates.

 

     (iv) Percentage of children who exit who also meet or exceed

 

spring benchmarks.

 

     (d) The impact of the Michigan Reading Corps on organizations

 

and stakeholders, including, but not limited to, school

 

administrators, internal coaches, and AmeriCorps members.

 

     (6) If the department determines that the Michigan Education

 

Corps has misused the funds allocated in subsection (4), the

 

Michigan Education Corps shall reimburse this state for the amount

 

of state funding misused.

 

     (7) If the funds allocated under this section are insufficient

 

to fully fund the payments under this section, payments under this

 

section shall be prorated on an equal per-pupil basis based on

 

grade 1 pupils.

 

     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 include a comprehensive needs assessment using aggregated

 

data from the applicant's entire service area and a community

 

collaboration plan that is endorsed by the local great start

 

collaborative and is part of the community's great start strategic

 

plan that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

     (a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

     (b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

     (c) The number of children the applicant will be able to serve

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 

     (d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the applicant and

 

community early childhood programs have met their funded

 

enrollments. The applicant shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

     (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 number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each applicant in the following manner: 1/2 of the

 

percentage of the applicant's pupils in grades 1 to 5 in all

 

districts served by the applicant who are eligible for free lunch,

 

as determined using the district's pupil membership count as of the

 

pupil membership count day in the school year prior to the fiscal

 

year for which the calculation is made, under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

 

multiplied by the average kindergarten enrollment of the districts

 

served by the applicant on the pupil membership count day of the 2

 

immediately preceding fiscal years.

 

     (4) The initial allocation for each fiscal year to each

 

eligible applicant under section 32d shall be determined by

 

multiplying the number of children determined by the formula under

 

subsection (3) or the number of children the applicant indicates it

 

will be able to serve under subsection (1)(c), whichever is less,

 

by $3,625.00 and shall be distributed among applicants in

 

decreasing order of concentration of eligible children as

 

determined by the formula under subsection (3). If the number of

 

children an applicant indicates it will be able to serve under

 

subsection (1)(c) includes children able to be served in a school-

 

day program, then the number able to be served in a school-day


program shall be doubled for the purposes of making this

 

calculation of the lesser of the number of children determined by

 

the formula under subsection (3) and the number of children the

 

applicant indicates it will be able to serve under subsection

 

(1)(c) and determining the amount of the initial allocation to the

 

applicant under section 32d. A district may contract with a head

 

start agency to serve children enrolled in head start with a

 

school-day program by blending head start funds with a part-day

 

great start readiness program allocation. All head start and great

 

start readiness program policies and regulations apply to the

 

blended program.

 

     (5) If funds allocated for eligible applicants or to the great

 

start readiness reserve fund under section 32d remain after the

 

initial allocation under subsection (4), the allocation under this

 

subsection shall be distributed to each eligible applicant under

 

section 32d in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). The

 

allocation shall be determined by multiplying the number of

 

children in each district within the applicant's service area

 

served in the immediately preceding fiscal year or the number of

 

children the applicant indicates it will be able to serve under

 

subsection (1)(c), whichever is less, minus the number of children

 

for which the applicant received funding in subsection (4) by

 

$3,625.00.

 

     (6) If funds allocated for eligible applicants or to the great

 

start readiness reserve fund under section 32d remain after the

 

allocations under subsections (4) and (5), remaining funds shall be


distributed to each eligible applicant under section 32d in

 

decreasing order of concentration of eligible children as

 

determined by the formula under subsection (3). If the number of

 

children the applicant indicates it will be able to serve under

 

subsection (1)(c) exceeds the number of children for which funds

 

have been received under subsections (4) and (5), the allocation

 

under this subsection shall be determined by multiplying the number

 

of children the applicant indicates it will be able to serve under

 

subsection (1)(c) less the number of children for which funds have

 

been received under subsections (4) and (5) by $3,625.00 until the

 

funds allocated for eligible applicants in section 32d are

 

distributed.

 

     (7) An applicant that offers supplementary child care funded

 

by funds other than those received under section 32d and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under

 

section 32d over other eligible applicants. As used in this

 

subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

     (8) 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.


     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2014-2015 2015-2016 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $807,969,900.00 $779,076,400.00 for

 

the federal programs under the no child left behind act of 2001,

 

Public Law 107-110. These funds are allocated as follows:

 

     (a) An amount estimated at $8,000,000.00 $5,000,000.00 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 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 programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

     (d) An amount estimated at $10,286,500.00 for the Michigan

 

charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

     (e) An amount estimated at $2,393,500.00 $3,000,000.00 for

 

rural and low income schools, funded from DED-OESE, rural and low

 

income school funds.

 

     (f) An amount estimated at $591,500,000.00 $565,000,000.00 to

 

provide supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.


     (g) An amount estimated at $8,878,000.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

     (h) An amount estimated at $39,000,000.00 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.

 

     (i) An amount estimated at $24,600,000.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2014-2015 2015-2016 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $31,300,000.00 $30,800,000.00 for the

 

following programs that are funded by federal grants:

 

     (a) An amount estimated at $200,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS –

 

center for disease control, Centers for Disease Control and

 

Prevention, AIDS funding.

 

     (b) An amount estimated at $2,600,000.00 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 to provide mental

 

health, substance abuse, or violence prevention services to

 

students, funded from HHS-SAMHSA.

 

     (d) (c) An amount estimated at $28,500,000.00 $24,000,000.00


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) As used in this section:

 

     (a) "DED" means the United States department of

 

education.Department of Education.

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.Office of Elementary and Secondary Education.

 

     (c) "DED-OVAE" means the DED office of vocational and adult

 

education.Office of Vocational and Adult Education.

 

     (d) "HHS" means the United States department of health and

 

human services.Department of Health and Human Services.

 

     (e) "HHS-ACF" means the HHS administration for children and

 

families.

 

     (e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental


Health Services Administration.

 

     Sec. 41. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,200,000.00 each fiscal year

 

for 2013-2014 and for 2014-2015 for 2015-2016 to applicant

 

districts and intermediate districts offering programs of

 

instruction for pupils of limited English-speaking ability under

 

section 1153 of the revised school code, MCL 380.1153.

 

Reimbursement shall be on a per-pupil basis and shall be based on

 

the number of pupils of limited English-speaking ability in

 

membership on the pupil membership count day. Funds allocated under

 

this section shall be used solely for instruction in speaking,

 

reading, writing, or comprehension of English. A pupil shall not be

 

counted under this section or instructed in a program under this

 

section for more than 3 years.

 

     Sec. 43. From the general fund money appropriated in section

 

11, there is allocated to the department for 2014-2015 2015-2016 an

 

amount not to exceed $1,800,000.00 for updating teacher

 

certification tests. The department shall use these funds to update

 

the set of teacher certification tests, including content-specific

 

and subject-relevant tests, to reflect current education standards

 

by not later than September 30, 2016. This is the second year of 2

 

years of funding.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $914,946,100.00 for 2014-2015

 

$934,546,100.00 for 2015-2016 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 for 2014-2015, 2014-2015, plus any

 

carryover federal funds from previous year appropriations. 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; 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. 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, estimated at $251,800,000.00 for

 

2014-2015, $257,200,000.00 for 2015-2016, 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, 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) 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). 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.

 

     (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 for 2014-2015 2015-2016 an amount not to exceed

 

$1,000,000.00 to make payments to districts and intermediate

 

districts under this subsection. If the amount allocated to a

 

district or intermediate district for a fiscal year under

 

subsection (2)(b) is less than the sum of the amounts allocated to

 

the district or intermediate district for 1996-97 under sections 52

 

and 58, there is allocated to the district or intermediate district

 

for the fiscal year an amount equal to that difference, adjusted by

 

applying the same proration factor that was used in the

 

distribution of funds under section 52 in 1996-97 as adjusted to

 

the district's or intermediate district's necessary costs of

 

special education used in calculations for the fiscal year. This

 

adjustment is to reflect reductions in special education program

 

operations or services between 1996-97 and subsequent fiscal years.

 

Adjustments 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 for 2014-2015 2015-2016 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 for 2014-2015 2015-

 

2016 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. This reimbursement

 

shall not be made after 2014-2015.

 

     (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 $4,000,000.00 for

 

2014-2015, $3,200,000.00 for 2015-2016, 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 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, 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. 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 community health.

 

     (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 enrolls pursuant to 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 provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and

 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has a written agreement

 

with the district or intermediate district in which the pupil

 

resides or the public school academy for the purpose of providing

 

the pupil with a free appropriate public education and the written


agreement includes at least an agreement on the responsibility for

 

the payment of the added costs of special education programs and

 

services for the pupil.

 

     Sec. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated for 2014-2015 2015-2016 the amount necessary,

 

estimated at $606,000,000.00, $621,000,000.00, for payments to

 

reimburse districts for 28.6138% of total approved costs of special

 

education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

     Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated for 2014-2015, 2015-2016, all available

 

federal funding, estimated at $74,000,000.00, $71,000,000.00, 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 for 2014-2015:2015-2016:


     (a) An amount estimated at $15,000,000.00 $14,000,000.00 for

 

handicapped infants and toddlers, funded from DED-OSERS,

 

handicapped infants and toddlers funds.

 

     (b) An amount estimated at $14,000,000.00 $12,000,000.00 for

 

preschool grants (Public Law 94-142), funded from DED-OSERS,

 

handicapped preschool incentive funds.

 

     (c) An amount estimated at $45,000,000.00 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.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, minus the district's foundation allowance

 

calculated under section 20. 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.

 

     (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 community health.

 

     (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 2014-

 

2015 2015-2016 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 2014-2015 2015-2016 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 55. (1) From the money appropriated in section 11, there

 

is allocated an amount not to exceed $150,000.00 for 2015-2016 to

 

Michigan State University, Department of Epidemiology, for a study

 

of the Conductive Learning Center located at Aquinas College. This

 

funding shall 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) It is the intent of the legislature that this funding is

 

for the first of 2 years of funding for this purpose.

 

     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, 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, 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 for 2014-2015

 

2015-2016 to reimburse intermediate districts levying millages for

 

special education pursuant to part 30 of the revised school code,

 

MCL 380.1711 to 380.1743. 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. 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 2013-2014 2014-


2015 shall be made in 2014-2015 2015-2016 at an amount per 2013-

 

2014 2014-2015 membership pupil computed by subtracting from

 

$172,200.00 $174,400.00 the 2013-2014 2014-2015 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2013-2014 2014-2015 millage levied.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 62.9% of the total amount allocated

 

under subsection (2).

 

     (5) 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 $26,611,300.00 $40,000,000.00 for

 

2014-2015 2015-2016 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

 

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 type of 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; the

 

program rank in student placement, job openings, and wages; and the

 

length of the training period provided, 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) In addition to the funds allocated in subsection (1), from

 

the appropriation in section 11, there is allocated an amount not

 

to exceed $1,000,000.00 for 2014-2015 to districts or intermediate

 

districts for area career and technical education centers for the

 

purpose of integrating the Michigan merit curriculum content

 

standards under sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b, into state-approved career and

 

technical education instructional programs for the purpose of

 

awarding academic credit. The department shall determine the

 

allocation to each career and technical education center in a

 

manner that provides for maximum integration of Michigan merit

 

curriculum content standards statewide.

 

     (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. In order to

 

eliminate financial disincentives from expanding career and

 

technical education enrollments to adults, a program that provides

 

services to section 107 adult education participants under this

 

subsection may bill back to the education provider and grantee

 

under section 107 for any basic education course requirements met

 

by the career and technical education programming, and then may

 

submit any remaining added costs to the department for

 

reimbursement as provided under this section.

 

     Sec. 61b. (1) from the appropriation in section 11, there is


allocated an amount not to exceed $17,800,000.00 for 2015-2016 for

 

CTE early/middle college programs authorized under this section.

 

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 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

 

programs in a prosperity region or subregion as described in this

 

section.

 

     (b) Collaborate with the talent district career 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 program and student data

 

and information as prescribed by the department.

 

     (4) A regional strategic plan must be approved by the talent

 

district career 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 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.

 

These career cluster rankings shall be determined and updated once

 

every 3 years.

 

     (b) An identification of educational entities in the

 

prosperity region or subregion that will provide eligible CTE

 

early/middle college 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 programs in the prosperity region or


subregion.

 

     (d) Any other requirements as defined by the department.

 

     (5) An eligible CTE early/middle college program is a 5-year

 

high school 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 program and transfers those credits

 

to the postsecondary institution upon completion of the CTE

 

early/middle college 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 programs shall

 

be distributed as follows:

 

     (a) The department shall calculate statewide average CTE costs

 

per full-time equated pupil for each career cluster by dividing

 

total prior year statewide costs for each career cluster by prior

 

year full-time equated pupils for each career cluster.

 

     (b) Distribution to each eligible CTE early/middle college

 

program shall be the product of 50% of CTE costs per full-time

 

equated pupil times the current year full-time equated pupil

 

enrollment of each career cluster in an eligible CTE early/middle

 

college program.

 

     (7) In order to receive funds under this section, a CTE

 

early/middle college program shall furnish to the intermediate

 

district that is the fiscal agent identified in subsection (1), 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) Funds distributed under this section may be used to fund

 

program expenditures that would otherwise be paid for from

 

foundation allowances. A program provider shall not use more than

 

5% of the funds allocated under this section to the program for

 

administrative costs.

 

     (9) 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.

 

     (10) If pupils enrolled in a career cluster in an eligible CTE

 

early/middle college 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.

 

     (11) 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) "CTE" means career and technical education.

 

     (c) "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. 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 for 2014-2015 2015-2016 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 2013-2014 2014-

 

2015 shall be made in 2014-2015 2015-2016 at an amount per 2013-

 

2014 2014-2015 membership pupil computed by subtracting from

 

$188,100.00 $189,400.00 the 2013-2014 2014-2015 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2013-2014 2014-2015 millage levied.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 38.4% of the total amount allocated

 

under subsection (2).

 

     (5) 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 2014-2015 2015-

 

2016 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 any 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 2014-2015

 

2015-2016 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 2014-2015 2015-2016 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. 67. (1) From the general fund amount appropriated in

 

section 11, there is allocated an amount not to exceed

 

$3,600,000.00 for 2015-2016 for college and career preparation

 

activities. The programs funded under this section are intended to

 

inform students of college and career options and to provide a wide

 

array of tools and 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) From the amount allocated in subsection (1), an amount not

 

to exceed $3,000,000.00 shall be used for the college access

 

program. The talent investment agency of the department of talent

 

and economic development shall administer these funds 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) From the amount allocated in subsection (1), an amount not

 

to exceed $600,000.00 shall be used for the purposes of this

 

subsection. The talent investment agency of the department of

 

talent and economic development shall administer these funds in

 

collaboration with the Michigan college access network and the

 

Michigan Virtual University to provide all of the following:

 

     (a) A pilot outreach program to provide information to pupils,

 

parents, and educators on dual enrollment and other opportunities

 

available to high school pupils to earn postsecondary credits,

 

industry-recognized technical certifications, and participation in

 

registered apprenticeships at no cost.

 

     (b) An online career planning tool that meets all of the

 

following:

 

     (i) Helps pupils create educational development plans before

 

starting high school.


     (ii) Provides information to pupils allowing them to make more

 

informed choices about career and education options.

 

     (iii) Is available to pupils at no cost.

 

     (4) 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 $3,316,500.00 for 2014-2015

 

$3,315,700.00 for 2015-2016 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 2014-2015 2015-2016 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 $1,691,500.00 for 2014-2015

 

$1,690,700.00 for 2015-2016 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. 77. (1) If a district is educating all of the high school

 

pupils who are counted in membership in another district pursuant

 

to an agreement between the 2 districts and if the educating

 

district provides transportation for its own resident high school

 

pupils, the educating district shall use state school aid under

 

this article to provide transportation to and from school for

 

normal curricular activities for those high school pupils who

 

reside in the other district.

 

     (2) Subsection (1) does not require the educating district to

 

provide transportation for a nonresident pupil for any

 

extracurricular or athletic activity in which the pupil

 

participates.

 

     Sec. 81. (1) Except as otherwise provided in this section,

 

from the appropriation in section 11, there is allocated for 2014-

 

2015 2015-2016 to the intermediate districts the sum necessary, but

 

not to exceed $67,115,000.00 $68,108,000.00 to provide state aid to

 

intermediate districts under this section.

 

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

 

for 2014-2015 2015-2016 an amount not to exceed $65,108,000.00

 

$68,108,000.00 for allocations to each intermediate district in an

 

amount equal to 104.8% 104.6% of the amount allocated to the

 

intermediate district under this subsection for 2013-2014. 2014-

 

2015. 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 subsection

 

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

 

allocated $7,000.00 for purposes of this subsection for 2012-2013,

 

for 2013-2014, and for 2014-2015, after which the payment under

 

this subsection will cease.

 

     (5) In order to receive funding under subsection (2), 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.

 

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

 

an amount not to exceed $2,000,000.00 for 2014-2015 for an

 

incentive payment to each intermediate district that meets best

 

practices as determined by the department under this subsection.

 

The amount of the incentive payment is an amount equal to 3.1% of

 

the amount allocated to the intermediate district under subsection

 

(2). An intermediate district is eligible for an incentive payment

 

under this subsection if the intermediate district satisfies at

 

least 5 of the following requirements not later than June 1, 2015:

 

     (a) The intermediate district enters into an agreement with

 

the department to comply with all of the following:

 

     (i) If the intermediate district developed a service

 

consolidation plan in 2013-2014, implement the service

 

consolidation plan in 2014-2015 and report to the department not


later than February 1, 2015 on the intermediate district's progress

 

in implementing the service consolidation plan.

 

     (ii) If the intermediate district did not develop a service

 

consolidation plan in 2012-2013 or 2013-2014, develop a service

 

consolidation plan in 2014-2015 to reduce operating costs that is

 

in compliance with guidelines that were developed by the department

 

for former section 11d as that section was in effect for 2010-2011.

 

     (iii) Make the intermediate district's service consolidation

 

plan publicly available on the intermediate district's website.

 

     (b) The intermediate district has obtained competitive bids on

 

the provision of 1 or more noninstructional services for the

 

intermediate district or its constituent districts with a value of

 

at least $50,000.00. The unfunded accrued liability costs for

 

retirement and other benefits shall be excluded from the

 

intermediate district's current costs for the purpose of comparing

 

competitive bids to the current costs of providing services.

 

     (c) The intermediate district develops a technology plan in

 

accordance with department policy on behalf of all constituent

 

districts within the intermediate district that integrates

 

technology into the classroom and prepares teachers to use digital

 

technologies as part of the instructional program of each of its

 

constituent districts. An intermediate district that developed a

 

technology plan in 2012-2013 or 2013-2014 shall continue to

 

implement that technology plan in 2014-2015.

 

     (d) The intermediate district provides to parents and

 

community members a dashboard or report card demonstrating the

 

intermediate district's efforts to manage its finances responsibly.


The dashboard or report card shall include revenue and expenditure

 

projections for the intermediate district for 2014-2015 and 2015-

 

2016, a listing of all debt service obligations, detailed by

 

project, including anticipated 2014-2015 payment for each project,

 

a listing of total outstanding debt, and at least all of the

 

following for the 3 most recent school years for which the data are

 

available:

 

     (i) A list of services offered by the intermediate district

 

that are shared by other local or intermediate districts and a list

 

of the districts or intermediate districts that participate.

 

     (ii) The total cost savings to local or other intermediate

 

districts that share services with the intermediate district.

 

     (iii) The number and percentage of teachers in the

 

intermediate district service area that are trained to integrate

 

technology into the classroom.

 

     (iv) The total funds received from levying special education

 

and vocational education millages, and the number of special

 

education and vocational education pupils served with those

 

dollars.

 

     (v) The number and percentage of individualized education

 

programs developed for special education pupils that contain

 

academic goals.

 

     (e) The intermediate district works in a consortium with 1 or

 

more other intermediate districts and the center to develop local

 

information management system requirements and bid specifications

 

that result in a recommended model information system that supports

 

interoperability to ensure linkage and connectivity in a manner


that facilitates the efficient exchange of data among districts,

 

intermediate districts, and the center. At a minimum, these

 

specifications shall include pupil management systems for both

 

general and special education, learning management tools, and

 

business services.

 

     (f) If an intermediate district provides medical, pharmacy,

 

dental, vision, disability, long-term care, or any other type of

 

benefit that would constitute a health care services benefit, to

 

employees and their dependents, the intermediate district is the

 

policyholder for each of its insurance policies that covers 1 or

 

more of these benefits. An intermediate district that does not

 

directly employ its staff or an intermediate district with a

 

voluntary employee beneficiary association that pays no more than

 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     (6) An intermediate district shall use at least a portion of

 

the increased funding under this section for 2015-2016 to explore,

 

facilitate, and implement service consolidation among and between

 

the intermediate district and its constituent districts.

 

     Sec. 94. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2014-2015 2015-2016 an

 

amount not to exceed $250,000.00 for efforts to increase the number

 

of pupils who participate and succeed in advanced placement and


international baccalaureate programs.

 

     (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 for low-income pupils who take an advanced placement or an

 

international baccalaureate test. Payments shall not exceed $20.00

 

per test completed.

 

     (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.

 

     (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 warehouses 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 $12,022,800.00 for 2014-2015

 

$11,967,000.00 for 2015-2016 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 2014-2015 2015-2016 the amount necessary,

 

estimated at $193,500.00, to support the operations of the center

 

and to establish a P-20 longitudinal data system as provided under

 

this section in compliance with the assurance provided to the

 

United States department of education in order to receive state


fiscal stabilization funds. 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), there is

 

allocated for 2014-2015 an amount not to exceed $850,000.00 the

 

center may use an amount determined by the center for 2015-2016 for

 

competitive grants 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.Department of

 

Education Office of Elementary and Secondary Education.

 

     (b) "State education agency" means the department.

 

     Sec. 95a. (1) The educator evaluation reserve fund is created

 

as a separate account within the state school aid fund.

 

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

 

any source for deposit into the educator evaluation reserve fund.

 

The state treasurer shall direct the investment of the educator

 

evaluation reserve fund. The state treasurer shall credit to the

 

educator evaluation reserve fund interest and earnings from the

 

educator evaluation reserve fund.

 

     (3) Money in the educator evaluation reserve fund at the close

 

of the fiscal year shall remain in the educator evaluation reserve

 

fund and shall not lapse to the state school aid fund or to the


general fund. The department of treasury shall be the administrator

 

of the educator evaluation reserve fund for auditing purposes.

 

     (4) From the appropriations in section 11, there is allocated

 

to the educator evaluation reserve fund for 2014-2015 an amount not

 

to exceed $12,100,000.00 $650,000.00 from the state school aid fund

 

and an amount not to exceed $2,700,000.00 $0.00 from the general

 

fund. Subject to subsections (5) and (6), the department shall

 

expend the money in the educator evaluation reserve fund for

 

implementing evaluation systems for public school teachers and

 

school administrators.

 

     (5) Funds in the educator evaluation reserve fund shall not be

 

expended unless House Bill Nos. 5223 and 5224 of the 97th

 

Legislature are enacted into law.

 

     (5) (6) Funds in the educator evaluation reserve fund shall

 

not be expended unless the state budget office has approved the

 

department's spending plan.

 

     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 2014-2015 2015-2016 for the purposes described in

 

this section.

 

     (2) The Michigan virtual university Virtual University shall

 

operate the Michigan virtual learning research institute. Virtual

 

Learning Research Institute. The Michigan virtual learning research

 

institute 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 digital 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 online 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 online course providers

 

operating in this state, analyze the effectiveness of online

 

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, and the department not later than

 

December 1, 2015.March 31, 2016.

 

     (v) Before August 31, 2015, 2016, provide an extensive

 

professional development program to at least 500 educational

 

personnel, including teachers, school administrators, and school

 

board members, that focuses on the effective integration of digital

 

learning into curricula and instruction. Not later than December 1,

 

2015, 2016, the Michigan virtual learning research institute

 

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. Virtual University. The report shall also identify

 

barriers and other opportunities to encourage the adoption of

 

digital learning in the public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating online 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 digital

 

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

 

online learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to online

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective digital learning instruction.

 

     (v) Pursue public/private partnerships that include districts


to study and implement competency-based technology-rich online

 

learning models.

 

     (vi) Create a statewide network of school-based mentors

 

serving as liaisons between pupils, online instructors, parents,

 

and school staff and provide mentors with research-based training

 

and technical assistance designed to help more pupils be successful

 

online learners.

 

     (vii) (vi) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify

 

barriers and opportunities related to online learning.

 

     (viii) (vii) Produce an annual consumer awareness report for

 

schools and parents about effective online education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (ix) (viii) Research and establish an internet-based platform

 

that educators can use to create student-centric learning tools and

 

resources and facilitate a user network that assists educators in

 

using the platform. As part of this initiative, the Michigan

 

virtual university shall work collaboratively with districts and

 

intermediate districts to establish a plan to make available online

 

resources that align to Michigan's K-12 curriculum standards for

 

use by students, educators, and parents.

 

     (x) (ix) Create and maintain a public statewide catalog of

 

online learning courses being offered by all public schools and

 

community colleges in this state. The Michigan virtual learning

 

research institute Virtual Learning Research Institute shall

 

identify and develop a list of nationally recognized best practices


for online learning and use this list to support reviews of online

 

course vendors, courses, and instructional practices. The Michigan

 

virtual learning research institute 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 Virtual Learning Research Institute shall review the

 

online course offerings of the Michigan virtual university, 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 Virtual Learning Research Institute

 

shall ensure that the statewide catalog is made available to the

 

public on the Michigan virtual university Virtual University

 

website and shall allow the ability to link it to each district's

 

website as provided for in section 21f. Beginning in 2014-2015, the

 

The statewide catalog shall also contain all of the following:

 

     (A) The number of enrollments in each online course in the

 

immediately preceding school year.

 

     (B) The number of enrollments that earned 60% or more of the

 

total course points for each online course in the immediately

 

preceding school year.

 

     (C) The completion rate for each online course.

 

     (xi) (x) Collaborate with key stakeholders to examine the need

 

and process for incorporating Develop prototype and pilot

 

registration, payment services, and transcript functionality to the

 

statewide catalog and train key stakeholders on how to use new

 

features.


     (xii) (xi) Collaborate with key stakeholders to examine

 

district level accountability and teacher effectiveness issues

 

related to online learning under section 21f and make findings and

 

recommendations publicly available.

 

     (3) In order for the Michigan virtual university to receive

 

any funds allocated under this section, the To further enhance its

 

expertise and leadership in digital learning, the Michigan Virtual

 

University shall continue to operate the Michigan Virtual School as

 

a statewide laboratory and quality model of instruction by

 

implementing online and blended learning solutions for Michigan

 

schools in accordance with the following parameters:

 

     (a) The Michigan virtual school 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 online courses.

 

     (c) In providing educators responsible for the teaching of

 

online 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 district.

 

     (4) If the course offerings are included in the statewide

 

catalog of online courses under subsection (2)(b)(ix), the Michigan

 

virtual school Virtual School operated by the Michigan virtual


university Virtual University may offer online 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) General education development 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.

 

     (5) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan virtual school, Virtual School, the student may use the

 

services provided by the Michigan virtual school Virtual School to

 

the district without charge to the student beyond what is charged

 

to a district pupil using the same services.

 

     (6) Not later than December 1 of each fiscal year, the

 

Michigan virtual university 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

 

Virtual School for the preceding state fiscal year:

 

     (a) A list of the districts served by the Michigan virtual

 

school.Virtual School.


     (b) A list of online course titles available to districts.

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (7) The governor may appoint an advisory group for the

 

Michigan virtual learning research institute 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 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.

 

     (8) Not later than November 1, 2014, 2015, the Michigan

 

virtual university 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 2014-2015 2015-2016 fiscal year that

 

includes a breakdown on its projected costs to deliver online

 

educational services to districts and a summary of the anticipated

 

fees to be paid by districts for those services. Beginning in 2013-

 

2014, not Not later than February 1, March 1 each year, the

 

Michigan virtual university 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 online 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.

 

     (9) 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 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

 

online courses for pupils that may or may not require attendance at

 

a physical school location.

 

     (c) "Digital learning" means instruction delivered via a web-

 

based educational delivery system that uses various information

 

technologies to provide a structured learning environment,

 

including online and blended learning instructional methods.

 

     (d) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a teacher who holds a valid Michigan teaching certificate is


responsible for providing instruction, determining appropriate

 

instructional methods for each pupil, diagnosing learning needs,

 

assessing pupil learning, prescribing intervention strategies,

 

reporting outcomes, and evaluating the effects of instruction and

 

support strategies.

 

     Sec. 99. (1) From the funds appropriated in section 11, there

 

is allocated for 2014-2015 2015-2016 an amount not to exceed

 

$2,750,000.00 $3,750,000.00 from the state school aid fund and an

 

amount not to exceed $475,000.00 from the general fund to support

 

the activities and programs of mathematics and science centers and

 

for other purposes as described in this section. In addition, from

 

the federal funds appropriated in section 11, there is allocated

 

for 2014-2015 2015-2016 an amount estimated at $5,249,300.00 from

 

DED-OESE, title II, mathematics and science partnership grants.

 

     (2) 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.

 

     (3) The department shall not award a state grant under this

 

section 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.

 

     (4) 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 section.

 

     (5) Allocations under this section to support the activities

 

and programs of mathematics and science centers shall be continuing

 

support grants to all 33 established mathematics and science

 

centers. Each established mathematics and science center that was

 

funded in the immediately preceding fiscal year shall receive state

 

funding in an amount equal to 100% of the amount it was allocated

 

under this subsection for the immediately preceding fiscal year. If

 

a center declines state funding or a center closes, the remaining

 

money available under this section shall be distributed to the

 

remaining centers, as determined by the department.

 

     (6) From the funds allocated in subsection (1), there is

 

allocated for 2014-2015 2015-2016 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 subsection is in addition to funding allocated

 

under subsection (5).

 

     (7) From the general fund money allocated in subsection (1),

 

there is allocated for 2014-2015 2015-2016 an amount not to exceed


$100,000.00 to the Michigan STEM partnership, to be used to

 

administer the grant process under this subsection. From the

 

general fund money allocated in subsection (1), there is allocated

 

for 2014-2015 2015-2016 an amount not to exceed $375,000.00 to the

 

Michigan STEM partnership to be used for a competitive grant

 

process to award competitive grants to organizations conducting

 

student-focused, project-based programs and competitions, either in

 

the classroom or extracurricular, in science, technology,

 

engineering, and mathematics subjects such as, but not limited to,

 

robotics, coding, and design-build-test projects, from pre-

 

kindergarten through college level. Funding under this subsection

 

is in addition to funding allocated under subsection (5) and shall

 

be used for connecting mathematics and science centers for science,

 

technology, engineering, and mathematics purposes and to support

 

the goals of the Michigan STEM partnership. A program receiving

 

funds under section 99h may not receive funds under this

 

subsection.

 

     (8) In order to receive state or federal funds under this

 

section, 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 such funds. The grant recipient shall

 

reimburse the state for all disallowances found in the audit.

 

     (9) Not later than September 30, 2018, the department shall

 

reevaluate and update the comprehensive master plan described in

 

subsection (1).

 

     (10) The department shall give preference in awarding the

 

federal grants allocated in subsection (1) to eligible existing


mathematics and science centers.

 

     (11) In order to receive state funds under this section, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

section.

 

     (12) Not later than July 1 of each year, a mathematics and

 

science center that receives funds under this section shall report

 

to the department in a form and manner prescribed by the department

 

on the following performance measures:

 

     (a) Statistical change in pre- and post-assessment scores for

 

students who enrolled in mathematics and science activities

 

provided to districts by the mathematics and science center.

 

     (b) Statistical change in pre- and post-assessment scores for

 

teachers who enrolled in professional development activities

 

provided by the mathematics and science center.

 

     (13) As used in this section:

 

     (a) "DED" means the United States department of

 

education.Department of Education.

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.Office of Elementary and Secondary Education.

 

     Sec. 99c. From the appropriation in section 11, there is

 

allocated from the general fund an amount not to exceed $60,000.00

 

for 2015-2016 for the purpose of civic education as described in

 

this section. The department shall establish a competitive grant

 

process that awards funding to not more than 1 provider for the

 

delivery of programs that exemplify best practices in civic

 

education. The programs shall teach upper elementary, middle, and


high school pupils how to participate responsibly in local and

 

state government, and shall provide upper elementary, middle, and

 

high school pupils with an innovative course of instruction on the

 

history and principles of United States constitutional democracy.

 

The grantee also shall provide support to all schools in this state

 

beyond those targeted for intensive programming funded under this

 

section through its website, conduct presentations at statewide

 

conferences, and conduct presentations at districts and

 

intermediate districts.

 

     Sec. 99h. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,000,000.00 for 2014-2015 2015-

 

2016 for competitive grants to districts that provide pupils in

 

grades 7 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.

 

     (2) A district applying for a FIRST tech challenge or FIRST

 

robotics competition program grant shall submit an application in a

 

form and manner determined by the department. To be eligible for a

 

grant, a district shall demonstrate in its application that the

 

district has established a partnership for the purposes of the

 

FIRST 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

 

program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:


     (a) Grants to districts to pay for stipends of $1,500.00 for 1

 

coach per team, distributed as follows:

 

     (i) Not more than 500 stipends for coaches of high school

 

teams, including existing teams.

 

     (ii) Not more than 100 stipends for coaches of middle school

 

or junior high teams, including existing teams.

 

     (iii) If the requests for stipends exceed the numbers of

 

stipends allowed under subparagraphs (i) and (ii), and if there is

 

funding remaining unspent under subdivisions (b) and (c), the

 

department shall use that remaining unspent funding for grants to

 

districts to pay for additional stipends in a manner that expands

 

the geographical distribution of teams.

 

     (b) Grants to districts for event registrations, materials,

 

travel costs, and other expenses associated with the preparation

 

for and attendance at FIRST tech challenge and FIRST robotics

 

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. The department shall set maximum grant amounts under this

 

subdivision in a manner that maximizes the number of teams that

 

will be able to receive funding.

 

     (c) Grants to 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) The funds allocated under this section are a work project


appropriation, and any unexpended funds for 2014-2015 2015-2016 are

 

carried forward into 2015-2016. 2016-2017. The purpose of the work

 

project is to continue to implement the projects described under

 

subsection (1). The estimated completion date of the work project

 

is September 30, 2017.2018.

 

     Sec. 102. (1) A district or intermediate district receiving

 

money under this article shall not adopt or operate under a deficit

 

budget, and a district or intermediate district shall not incur an

 

operating deficit in a fund during a school fiscal year. A If a

 

district or intermediate district that has an existing deficit fund

 

balance, that incurs a deficit fund balance in the most recently

 

completed school fiscal year, or that adopts a current year budget

 

that projects a deficit fund balance, shall not be allotted or paid

 

a further sum under this article The district or intermediate

 

district shall immediately notify the superintendent and state

 

treasurer and within 30 days of that notification submit to the

 

superintendent and the state treasurer a preplan financial report

 

in the form and manner prescribed by the department of treasury.

 

The department may withhold some or all of the money payable to the

 

district or intermediate district under this article as the

 

superintendent determines necessary to incentivize the district or

 

intermediate district to eliminate the deficit until the district

 

or intermediate district submits to the department for approval a

 

budget for the current school fiscal year and a plan to eliminate

 

the district's or intermediate district's deficit not later than

 

the end of the second school fiscal year after the deficit was

 

incurred or the budget projecting a deficit was adopted. Withheld


state aid payments a deficit elimination plan in the form and

 

manner prescribed by the department or the deficit elimination plan

 

is approved by the department. The department may require a deficit

 

elimination plan to include an academic plan for the district or

 

intermediate district. Money withheld under this section shall be

 

released after the department approves the deficit elimination

 

plan. and ensures that the budget for the current school fiscal

 

year is balanced. After the department approves a district's or

 

intermediate district's deficit elimination plan, the district or

 

intermediate district shall post the deficit elimination plan on

 

the district's or intermediate district's website.

 

     (2) Not later than March 1 of each year, the department shall

 

prepare a report of deficits incurred or projected by districts and

 

intermediate districts in the immediately preceding fiscal year and

 

the progress made in reducing those deficits and submit the report

 

to the standing committees of the legislature responsible for K-12

 

education legislation, the appropriations subcommittees of the

 

legislature responsible for K-12 education school aid

 

appropriations, the house and senate fiscal agencies, the state

 

treasurer, and the state budget director. The department also shall

 

submit quarterly interim reports concerning the progress made by

 

districts and intermediate districts in reducing those deficits to

 

the standing committees of the legislature responsible for K-12

 

education legislation, the appropriations subcommittees of the

 

legislature responsible for K-12 school aid appropriations, the

 

house and senate fiscal agencies, the state treasurer, and the

 

state budget director. On a quarterly basis, the superintendent of


public instruction shall publicly present those reports to the

 

appropriations subcommittees of the legislature responsible for K-

 

12 education appropriations.

 

     (3) The amount of the permissible deficit for each school

 

fiscal year shall not exceed the amount of state aid reduced by an

 

executive order during that school fiscal year.

 

     (3) (4) A district or intermediate district that has an

 

existing deficit fund balance, that incurs a deficit fund balance

 

in the most recently completed school fiscal year, or that adopts a

 

current year budget that projects a deficit fund balance shall

 

submit to the department and the state treasurer a monthly

 

monitoring report on revenue and expenditures in a form and manner

 

prescribed by the department and shall post these reports on its

 

website.

 

     (4) (5) If a district or intermediate district is not able to

 

comply with the provisions of this section, the district or

 

intermediate district shall submit to the department a plan to

 

eliminate its deficit. Upon approval of the plan submitted,

 

required to submit a deficit elimination plan under this section,

 

and the deficit elimination plan is approved by the department, the

 

superintendent of public instruction may continue allotment and

 

payment of funds under this article. , extend When approving a

 

deficit elimination plan, the superintendent may establish the

 

period of time in which a district or intermediate district has to

 

eliminate its deficit, and set special conditions that the district

 

or intermediate district must meet during the period of the

 

extension. while the deficit elimination is in effect. After the


department approves a district's or intermediate district's deficit

 

elimination plan under this subsection, the district or

 

intermediate district shall post the deficit elimination plan on

 

the district's or intermediate district's website. The requirements

 

of this section relating to a deficit elimination plan do not apply

 

to a district or intermediate district if the district or

 

intermediate district is required to submit an enhanced deficit

 

elimination plan under subsection (5).

 

     (5) If the state treasurer determines that financial stress is

 

evident, the state treasurer may require a district or intermediate

 

district to submit an enhanced deficit elimination plan in order to

 

ensure that the deficit does not become unmanageable and trigger

 

action under the local financial stability and choice act, 2012 PA

 

436, MCL 141.1541 to 141.1575. An enhanced deficit elimination plan

 

shall provide for the resolution of the deteriorating financial

 

circumstances, persistently declining enrollment, or other

 

indicators of recurring operating deficits or recurring financial

 

stress and is subject to approval by the state treasurer. As a

 

condition of approving an enhanced deficit elimination plan, the

 

state treasurer may require a district or intermediate district

 

required to submit an enhanced deficit elimination plan under this

 

section to enter into a financial recovery agreement with the state

 

treasurer. A financial recovery agreement may provide for, but is

 

not limited to, all of the following:

 

     (a) Assistance and guidance from the department of treasury

 

and other state departments and agencies.

 

     (b) An academic plan for the district.


     (c) The appointment of a local auditor or inspector, or both.

 

     (d) Remedial measures or other action under this article or

 

the revised school code necessary to address the financial

 

circumstances of the district or intermediate district.

 

     (e) The required retention by the district or intermediate

 

district of a consultant or 1 or more other experts for the purpose

 

of assisting the district or intermediate district to achieve the

 

goals and objectives of the financial recovery agreement.

 

     (6) Before a district or intermediate district submits an

 

enhanced deficit elimination plan to the state treasurer under

 

subsection (5), the board of the district or intermediate district

 

shall approve the plan. If a district or intermediate district is

 

required to submit an enhanced deficit elimination plan under

 

subsection (5), some or all of the money payable to the district or

 

intermediate district under this article may be withheld and

 

released in the same manner as provided under subsection (1). When

 

approving an enhanced deficit elimination plan, the state treasurer

 

may establish the period of time within which a district or

 

intermediate district must eliminate its deficit and may set

 

special conditions that the district or intermediate district must

 

meet while the deficit elimination plan is in effect.

 

     (7) After the state treasurer approves an enhanced deficit

 

elimination plan for a district or intermediate district, the

 

district or intermediate district shall post the enhanced deficit

 

elimination plan on the district's or intermediate district's

 

website.

 

     (8) If a district or intermediate district is required to


submit an enhanced deficit elimination plan under subsection (5),

 

the district or intermediate district shall submit to the

 

superintendent and the state treasurer an enhanced monthly

 

monitoring report on revenue, expenditures, cash flow, debt, other

 

liabilities, assets, budget amendments, pupil membership, and other

 

data relating to the finances of the district or intermediate

 

district in a form and manner prescribed by the department of

 

treasury and shall post these reports on its website.

 

     (9) An allocation to a district or intermediate district under

 

this article is contingent upon the district's or intermediate

 

district's compliance with this section.

 

     (10) A district or intermediate district required to submit a

 

deficit elimination plan or enhanced deficit elimination plan shall

 

ensure that the academic plan includes attempts to exhaust all

 

resources under sections 35a to 35g.

 

     (11) (6) For the purposes of As used in this section: ,

 

"deficit

 

     (a) "Deficit elimination plan" means a plan required under

 

this section for the elimination of a deficit that sets forth

 

actions to be taken to eliminate the deficit within the time period

 

prescribed by the department.

 

     (b) "Deficit fund balance" means that term as defined in the

 

Michigan public school accounting manual published by the

 

department.

 

     (c) "Enhanced deficit elimination plan" means measures

 

required by the state treasurer under this section to address the

 

financial conditions within a district or intermediate district and


resolve any deficit within the time period prescribed by the state

 

treasurer.

 

     (d) "Preplan financial report" means a report on the financial

 

conditions within a district or intermediate district, required

 

under this section and submitted in a form and manner prescribed by

 

the state treasurer, which may include, but is not limited to,

 

financial data and other information on liabilities, payments,

 

enrollment, borrowing, and other criteria relating to the financial

 

conditions within a district or intermediate district.

 

     Sec. 102a. (1) Before July 7 of each year, each district

 

receiving money under this article shall transmit to the center the

 

budgetary assumptions used by the district when adopting its annual

 

budget pursuant to the uniform budgeting and accounting act, 1968

 

PA 2, MCL 141.421 to 141.440a. The submission of the budgetary

 

assumptions under this section shall be in the form prescribed by

 

the center and shall include at least all of the following:

 

     (a) The projected foundation allowance used by the district

 

when adopting the district's budget for the current school fiscal

 

year.

 

     (b) The district's projected membership used by the district

 

when adopting its budget for the current school fiscal year.

 

     (c) The district's expenditures per-pupil for the immediately

 

preceding school fiscal year, calculated by dividing the district's

 

total general fund operating expenditures during that school fiscal

 

year by the district's membership reported by the department in the

 

most recent state aid financial status report for the month of May.

 

     (d) The district's projected expenditures per-pupil for the


current school fiscal year, calculated by dividing the total

 

general fund operating expenditures authorized by the district's

 

governing body when adopting the district's budget for the current

 

school fiscal year by the district's projected membership used when

 

adopting the district's budget for the current school fiscal year.

 

     (2) An allocation to a district under this article is

 

contingent upon the district's compliance with this section.

 

     Sec. 102b. (1) If a district determines that conditions of

 

fiscal stress, a deficit, or conditions indicating a financial

 

emergency have arisen or may arise for the district, the district

 

shall notify the superintendent and request technical assistance in

 

addressing the fiscal stress, deficit, or financial emergency. The

 

superintendent shall notify the state treasurer of any request for

 

technical assistance under this subsection.

 

     (2) After receiving a request for technical assistance under

 

subsection (1), the department shall consult with the department of

 

treasury regarding the provision of technical assistance to the

 

district. Subject to available resources, the department and the

 

department of treasury shall review the financial condition and the

 

budget of the district and provide the district with technical

 

assistance, including, but not limited to, data analysis tools,

 

with the objective of assisting the district in avoiding or

 

remedying conditions of fiscal stress, a deficit, or a financial

 

emergency before further state intervention.

 

     (3) An allocation to a district under this article is

 

contingent upon the district's compliance with this section.

 

     (4) As used in this section:


     (a) "Deficit" means a condition prohibited under section 15(2)

 

of the uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.435, or under section 102(1). Deficit also includes 1 or both

 

of the following circumstances for a district or intermediate

 

district:

 

     (i) The total general fund balance of the district or

 

intermediate district is negative or is projected to be negative at

 

the end of the current school fiscal year.

 

     (ii) One or more of the funds of the district or intermediate

 

district other than the general fund have a negative balance or

 

projected negative balance that is greater than the total general

 

fund balance.

 

     (b) "Financial emergency" means that 1 or more of the

 

conditions described in section 5(3)(a) to (m) of the local

 

financial stability and choice act, 2012 PA 436, MCL 141.1545,

 

exist or are likely to occur within a district in the current or

 

next school fiscal year and threaten the ability of the district to

 

provide public educational services in a manner that complies with

 

this article, the revised school code, and all applicable rules.

 

     (c) "Fiscal stress" means 1 or both of the following:

 

     (i) That a district is unable to meet its short-term or long-

 

term financial obligations as those obligations arise.

 

     (ii) That 1 or more of the conditions described in section

 

4(1)(a) to (s) of the local financial stability and choice act,

 

2012 PA 436, MCL 141.1544, exist or are likely to occur within a

 

district.

 

     Sec. 102c. (1) The superintendent or the state treasurer may


require a district to submit periodic financial status reports

 

under this section if either determines that financial stress may

 

exist within the district, that a deficit is projected to arise

 

within the district during the current school fiscal year or the

 

following 2 school fiscal years, or that the district may be unable

 

to meet its financial obligations while also satisfying its

 

obligations or ability to provide public educational services in a

 

manner that complies with this article, the revised school code,

 

and applicable rules based upon 1 or more of the following:

 

     (a) The district has failed to pay a required obligation once

 

or more in a school fiscal year.

 

     (b) The district has expended or distributed tax revenue in a

 

manner prohibited by law.

 

     (c) The district's pupil enrollment has declined by 5% or more

 

in a single school fiscal year or by 15% or more over a period of 3

 

or more fiscal years and the district failed to reduce expenditures

 

in a manner that addressed the enrollment decline.

 

     (d) The school district's expenditures per-pupil have

 

increased by 5% or more in the most recent school fiscal year as

 

compared to the immediately preceding school fiscal year. As used

 

in this subdivision, "expenditures per-pupil" means the quotient of

 

dividing the total general fund operating expenditures for a school

 

fiscal year by the final audited number of pupils in membership for

 

the state fiscal year in which that school fiscal year ended.

 

     (e) The district's actual enrollment or foundation allowance

 

for a school fiscal year was 97% or less of the district's

 

budgetary assumptions reported under section 102a for the school


fiscal year and the district failed to adopt an amended budget

 

reflecting the actual enrollment and foundation allowance for the

 

school fiscal year by November 15 of the school fiscal year.

 

     (f) The district has applied for a loan under the emergency

 

municipal loan act, 1980 PA 243, MCL 141.931 to 141.942.

 

     (2) If a district is required to submit periodic financial

 

reports under subsection (1), the district shall do all of the

 

following:

 

     (a) Submit a periodic financial status report in the form and

 

manner and on the periodic basis prescribed by the department of

 

treasury after consultation with the department.

 

     (b) Transmit a copy of each periodic financial status report

 

required under this section to the members of its governing body

 

for approval prior to submission of the report to the department of

 

treasury and the department.

 

     (c) Provide the department of treasury or the department with

 

other financial data or information relating to the financial

 

conditions of the district as requested by the department of

 

treasury or the department.

 

     (d) Allow the department of treasury or the department to

 

examine financial records and books of account of the district.

 

     (e) Promptly and fully provide the assistance and information

 

necessary and properly requested by the department of treasury or

 

the department in the exercise of the department of treasury's or

 

the department's duties under this section.

 

     (3) If a district fails to submit a periodic financial status

 

report required under this section, or if the state treasurer


determines or is notified by the superintendent that information

 

included on a periodic financial status report indicates that

 

financial stress exists within a district that has a deficit, or

 

that a deficit is projected to occur within a district in the

 

current school fiscal year or the next school fiscal year and that

 

the district lacks the capacity to address without state

 

assistance, the state treasurer may require the district to submit

 

an enhanced deficit elimination plan under section 102.

 

     (4) A district is not required to submit periodic financial

 

status reports under this section if the district is required to

 

submit a deficit elimination plan or an enhanced deficit

 

elimination plan under section 102, or if a financial emergency has

 

been declared for the district under the local financial stability

 

and choice act, 2012 PA 436, MCL 141.1541 to 141.1575. If a

 

district is required to submit periodic financial status reports

 

under this section and a loan is issued to the school district

 

under the emergency loan act, 1980 PA 243, MCL 141.931 to 141.942,

 

the state treasurer shall require the school district to submit

 

periodic financial reports under this section for at least 4 years

 

after the date of issuance of the loan.

 

     (5) A district is no longer required to submit periodic

 

financial status reports under this section if the state treasurer,

 

after consultation with the superintendent, determines that the

 

periodic financial status reports submitted by the district

 

indicate that potential financial stress does not exist within the

 

district, that a deficit is not projected to arise within the

 

district within the current school fiscal year or the following 2


school fiscal years, and that the district will be able to meet its

 

financial obligations while also satisfying the district's ability

 

to provide public educational services in a manner that complies

 

with this article, the revised school code, and applicable rules.

 

     (6) If the state treasurer makes a determination under

 

subsection (5) that the conditions under that subsection apply to a

 

district, the state treasurer shall notify the district. The

 

superintendent may notify the state treasurer that the

 

superintendent has determined that conditions under subsection (5)

 

apply to a district.

 

     (7) As used in this section:

 

     (a) "Deficit" means a condition prohibited under section 15(2)

 

of the uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.435, or under section 102(1). Deficit also includes 1 or both

 

of the following circumstances for a district or intermediate

 

district:

 

     (i) The total general fund balance of the district or

 

intermediate district is negative or is projected to be negative at

 

the end of the current school fiscal year.

 

     (ii) One or more of the funds of the district or intermediate

 

district other than the general fund have a negative balance or

 

projected negative balance that is greater than the total general

 

fund balance.

 

     (b) "Financial emergency" means that 1 or more of the

 

conditions described in section 5(3)(a) to (m) of the local

 

financial stability and choice act, 2012 PA 436, MCL 141.1545,

 

exist or are likely to occur within a district in the current or


next school fiscal year and threaten the ability of the district to

 

provide public educational services in a manner that complies with

 

this article, the revised school code, and all applicable rules.

 

     (c) "Fiscal stress" means 1 or both of the following:

 

     (i) That a district is unable to meet its short-term or long-

 

term financial obligations as those obligations arise.

 

     (ii) that 1 or more of the conditions described in section

 

4(1)(a) to (s) of the local financial stability and choice act,

 

2012 PA 436, MCL 141.1544, exist or are likely to occur within a

 

district.

 

     Sec. 102d. (1) From the funds appropriated in section 11,

 

there is allocated an amount not to exceed $1,500,000.00 for 2015-

 

2016 for reimbursements to districts for the licensing of school

 

data analytical tools as described under this section. The

 

reimbursement is for districts that choose to use a school data

 

analytical tool to assist the district and that enter into a

 

licensing agreement for a school data analytical tool with 1 of the

 

vendors approved by the department under subsection (2).

 

     (2) Not later than October 15, 2015, the department shall

 

review vendors for school data analytical tools and provide

 

districts with a list of up to 4 approved vendors that districts

 

may use to be eligible for a reimbursement paid under this section.

 

For a vendor to be approved under this section, the department must

 

determine that the school data analytical tool supplied by the

 

vendor meets at least all of the following:

 

     (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 as a reimbursement for already having a licensing

 

agreement or for entering into a licensing agreement not later than

 

December 1, 2015 with a vendor approved under subsection (2) to

 

implement a school data analytical tool. Reimbursement under this

 

section shall be made on an equal per-pupil basis.

 

     (4) 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 2014-2015 2015-2016 an amount not to exceed

 

$41,394,400.00 $43,994,400.00 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 2014-2015 2015-2016 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.

 

     (2) The results of each test administered as part of the

 

Michigan educational assessment program, 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.

 

     (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) 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.

 

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

 

an amount not to exceed $8,500,000.00 for the following purposes:

 

     (a) Converting existing student assessments to online

 

assessments.

 

     (b) Providing paper and pencil test versions to districts not

 

prepared to implement online assessments.

 

     (c) Expanding writing assessments to additional grade levels.

 

     (d) Providing an increased number of constructed response test

 

questions so that pupils can demonstrate higher-order skills such

 

as problem solving and communicating reasoning.


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

 

an amount not to exceed $3,200,000.00 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.

 

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

 

an amount not to exceed $3,000,000.00 $5,600,000.00 for the purpose

 

of implementing a summative assessment system pursuant to section

 

104c.

 

     (8) As used in this section:

 

     (a) "DED" means the United States department of

 

education.Department of Education.

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.Office of Elementary and Secondary Education.

 

     (c) "DED-OSERS" means the DED office of special education and

 

rehabilitative services.Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 104b. (1) In order to receive state aid under this

 

article, a district shall comply with this section and shall

 

administer the Michigan merit examination to pupils in grade 11,

 

and to pupils in grade 12 who did not take the complete Michigan

 

merit examination in grade 11, as provided in this section. The

 

Michigan merit examination consists of a college entrance test,

 

work skills test, and the summative assessment known as the


Michigan student test of educational progress (M-STEP).

 

     (2) For the purposes of this section, the department of

 

technology, management, and budget shall contract with 1 or more

 

providers to develop, supply, and score the Michigan merit

 

examination. The Michigan merit examination shall consist of all of

 

the following:

 

     (a) Assessment instruments that measure English language arts,

 

mathematics, reading, and science, and that are used by colleges

 

and universities in this state for entrance or placement purposes.

 

This shall may include 1 or more writing components.

 

     (b) One or more tests from 1 or more test developers that

 

assess a pupil's ability to apply at least reading and mathematics

 

skills in a manner that is intended to allow employers to use the

 

results in making employment decisions. The department of

 

technology, management, and budget and the superintendent shall

 

ensure that any test or tests selected under this subdivision have

 

all the components necessary to allow a pupil to be eligible to

 

receive the results of a nationally recognized evaluation of

 

workforce readiness if the pupil's test performance is adequate.

 

     (c) A social studies component.

 

     (d) Any other component that is necessary to obtain the

 

approval of the United States department of education Department of

 

Education to use the Michigan merit examination for the purposes of

 

the no child left behind act of 2001, Public Law 107-110.

 

     (3) In addition to all other requirements of this section, all

 

of the following apply to the Michigan merit examination:

 

     (a) The department of technology, management, and budget and


the superintendent shall ensure that any contractor used for

 

scoring the Michigan merit examination supplies an individual

 

report for each pupil that will identify for the pupil's parents

 

and teachers whether the pupil met expectations or failed to meet

 

expectations for each standard, to allow the pupil's parents and

 

teachers to assess and remedy problems before the pupil moves to

 

the next grade.

 

     (b) The department of technology, management, and budget and

 

the superintendent shall ensure that any contractor used for

 

scoring, developing, or processing the Michigan merit examination

 

meets quality management standards commonly used in the assessment

 

industry, including at least meeting level 2 of the capability

 

maturity model developed by the software engineering institute of

 

Carnegie Mellon university for the first year the Michigan merit

 

examination is offered to all grade 11 pupils and at least meeting

 

level 3 of the capability maturity model for subsequent years.

 

     (c) The department of technology, management, and budget and

 

the superintendent shall ensure that any contract for scoring,

 

administering, or developing the Michigan merit examination

 

includes specific deadlines for all steps of the assessment

 

process, including, but not limited to, deadlines for the correct

 

testing materials to be supplied to schools and for the correct

 

results to be returned to schools, and includes penalties for

 

noncompliance with these deadlines.

 

     (d) The superintendent shall ensure that the Michigan merit

 

examination meets all of the following:

 

     (i) Is designed to test pupils on grade level content


expectations or course content expectations, as appropriate, this

 

state's content standards in all subjects tested.

 

     (ii) Complies with requirements of the no child left behind

 

act of 2001, Public Law 107-110.

 

     (iii) Is consistent with the code of fair testing practices in

 

education prepared by the joint committee on testing practices of

 

the American psychological association.Joint Committee on Testing

 

Practices of the American Psychological Association.

 

     (iv) Is factually accurate. If the superintendent determines

 

that a question is not factually accurate and should be excluded

 

from scoring, the state board and the superintendent shall ensure

 

that the question is excluded from scoring.

 

     (4) A district shall include on each pupil's high school

 

transcript all of the following:

 

     (a) For each high school graduate who has completed the

 

Michigan merit examination under this section, the pupil's scaled

 

score on each subject area component of the Michigan merit

 

examination.

 

     (b) The number of school days the pupil was in attendance at

 

school each school year during high school and the total number of

 

school days in session for each of those school years.

 

     (5) The superintendent shall work with the provider or

 

providers of the Michigan merit examination to produce Michigan

 

merit examination subject area scores for each pupil participating

 

in the Michigan merit examination, including scaling and merging of

 

test items for the different subject area components. The

 

superintendent shall design and distribute to districts,


intermediate districts, and nonpublic schools a simple and concise

 

document that describes the scoring for each subject area and

 

indicates the scaled score ranges for each subject area.

 

     (6) The Michigan merit examination shall be administered in

 

each district during the last 12 weeks of the district's school

 

year. The superintendent shall ensure that the Michigan merit

 

examination is scored and the scores are returned to pupils, their

 

parents or legal guardians, and districts not later than the

 

beginning of the pupil's first semester of grade 12. The returned

 

scores shall indicate at least the pupil's scaled score for each

 

subject area component and the range of scaled scores for each

 

subject area. In reporting the scores to pupils, parents, and

 

schools, the superintendent shall provide standards-specific,

 

meaningful, and timely feedback on the pupil's performance on the

 

Michigan merit examination.

 

     (7) A district shall administer the complete Michigan merit

 

examination to a pupil only once and shall not administer the

 

complete Michigan merit examination to the same pupil more than

 

once. If a pupil does not take the complete Michigan merit

 

examination in grade 11, the district shall administer the complete

 

Michigan merit examination to the pupil in grade 12. If a pupil

 

chooses to retake the college entrance examination component of the

 

Michigan merit examination, as described in subsection (2)(a), the

 

pupil may do so through the provider of the college entrance

 

examination component and the cost of the retake is the

 

responsibility of the pupil unless all of the following are met:

 

     (a) The pupil has taken the complete Michigan merit


examination.

 

     (b) The pupil did not qualify for a Michigan promise grant

 

under section 6 of the Michigan promise grant act, 2006 PA 479, MCL

 

390.1626, based on the pupil's performance on the complete Michigan

 

merit examination.

 

     (c) The pupil meets the income eligibility criteria for free

 

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

 

Russell national school lunch act, 42 USC 1751 to 1769i.

 

     (d) The pupil has applied to the provider of the college

 

entrance examination component for a scholarship or fee waiver to

 

cover the cost of the retake and that application has been denied.

 

     (e) After taking the complete Michigan merit examination, the

 

pupil has not already received a free retake of the college

 

entrance examination component paid for either by this state or

 

through a scholarship or fee waiver by the provider.

 

     (8) The superintendent shall ensure that the length of the

 

Michigan merit examination and the combined total time necessary to

 

administer all of the components of the Michigan merit examination

 

are the shortest possible that will still maintain the degree of

 

reliability and validity of the Michigan merit examination results

 

determined necessary by the superintendent. The superintendent

 

shall ensure that the maximum total combined length of time that

 

schools are required to set aside for pupils to answer all test

 

questions on the Michigan merit examination does not exceed 8 hours

 

if the superintendent determines that sufficient alignment to

 

applicable Michigan merit curriculum content standards can be

 

achieved within that time limit.


     (9) A district shall provide accommodations to a pupil with

 

disabilities for the Michigan merit examination, as provided under

 

section 504 of title V of the rehabilitation act of 1973, 29 USC

 

794; subtitle A of title II of the Americans with disabilities act

 

of 1990, 42 USC 12131 to 12134; the individuals with disabilities

 

education act amendments of 1997, Public Law 105-17; and the

 

implementing regulations for those statutes. The provider or

 

providers of the Michigan merit examination and the superintendent

 

shall mutually agree upon the accommodations to be provided under

 

this subsection.

 

     (10) To the greatest extent possible, the Michigan merit

 

examination shall be based on grade level content expectations or

 

course content expectations, as appropriate. Not later than July 1,

 

2008, the department shall identify specific grade level content

 

expectations to be taught before and after the middle of grade 11,

 

so that teachers will know what content will be covered within the

 

Michigan merit examination.this state's content standards. The

 

department may augment the college entrance and work skills

 

components of the Michigan merit exam to develop the assessment,

 

depending on the alignment of those components to this state's

 

content standards. If these components do not align to these

 

standards, the department shall produce additional components as

 

required by law, while minimizing the amount of time needed for

 

assessments.

 

     (11) A child who is a student in a nonpublic school or home

 

school may take the Michigan merit examination under this section.

 

To take the Michigan merit examination, a child who is a student in


a home school shall contact the district in which the child

 

resides, and that district shall administer the Michigan merit

 

examination, or the child may take the Michigan merit examination

 

at a nonpublic school if allowed by the nonpublic school. Upon

 

request from a nonpublic school, the superintendent shall direct

 

the provider or providers to supply the Michigan merit examination

 

to the nonpublic school and the nonpublic school may administer the

 

Michigan merit examination. If a district administers the Michigan

 

merit examination under this subsection to a child who is not

 

enrolled in the district, the scores for that child are not

 

considered for any purpose to be scores of a pupil of the district.

 

     (12) In contracting under subsection (2), the department of

 

technology, management, and budget shall consider a contractor that

 

provides electronically-scored essays with the ability to score

 

constructed response feedback in multiple languages and provide

 

ongoing instruction and feedback.

 

     (13) The purpose of the Michigan merit examination is to

 

assess pupil performance in mathematics, science, social studies,

 

and English language arts for the purpose of improving academic

 

achievement and establishing a statewide standard of competency.

 

The assessment under this section provides a common measure of data

 

that will contribute to the improvement of Michigan schools'

 

curriculum and instruction by encouraging alignment with Michigan's

 

curriculum framework standards and promotes pupil participation in

 

higher level mathematics, science, social studies, and English

 

language arts courses. These standards are based upon the

 

expectations of what pupils should learn through high school and


are aligned with national standards.

 

     (14) For a pupil enrolled in a middle college program, other

 

than a middle college operated as a shared educational entity or a

 

specialized shared educational entity, if the pupil receives at

 

least 50% of his or her instruction at the high school while in

 

grade 11, the Michigan merit examination shall be administered to

 

the pupil at the high school at which the pupil receives high

 

school instruction, and the department shall include the pupil's

 

scores on the Michigan merit examination in the scores for that

 

high school for all purposes for which a school's or district's

 

results are reported. The department shall allow the middle college

 

program to use a 5-year graduation rate for determining adequate

 

yearly progress. As used in this subsection, "middle college" means

 

a program consisting of a series of courses and other requirements

 

and conditions, including an early college or other program created

 

under a memorandum of understanding, that allows a pupil to

 

graduate from high school with both a high school diploma and a

 

certificate or degree from a community college or state public

 

university.

 

     (15) As used in this section:

 

     (a) "English language arts" means reading and writing.

 

     (b) "Social studies" means United States history, world

 

history, world geography, economics, and American government.

 

     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 2014-2015 new Michigan education

 

assessment program (MEAP) 2015-2016 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 beginning in the 2015-2016 school year 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 10, 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 elementary and secondary

 

education act.

 

     (c) The summative assessments for science shall be

 

administered to all public school pupils in at least grades 4 and

 

7, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.


     (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 elementary and secondary education act.

 

     (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 assessments shall be capable of being implemented

 

statewide in a fully operational manner no later than the 2015-2016

 

school year.

 

     (k) (l) 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) (m) The summative assessment system shall ensure that the

 

assessments are pilot tested before statewide implementation.

 

     (m) (n) 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) (o) 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.

 

     (4) To begin the process required under subsection (3), not

 

later than September 1, 2014, the department shall issue a request

 

for proposals for the summative assessment system described in that

 

subsection.Beginning in the 2015-2016 school year, the department

 

shall field test additional components in the assessment system

 

under this subsection for full implementation in the 2016-2017

 

school year. The additional components are necessary to determine a

 

pupil's proficiency level before grade 3. The additional components

 

are as follows:

 

     (a) Assessments administered in the fall and spring of each

 

year to measure English language arts and mathematics in each of

 

grades 1 and 2.

 

     (b) The kindergarten entry assessment (KEA), to be

 

administered in the fall of the kindergarten year. The KEA shall

 

include the same components as under subdivision (a) and also may

 

include observational components that measure cognitive, social-

 

emotional, and physical skills.

 

     (5) This section does not prohibit districts from adopting

 

interim assessments.

 

     (6) The department shall seek a waiver or amendment to an

 

existing waiver for federal approval of the assessment framework


under this section and shall notify the United States department of

 

education about the provisions of this section and take necessary

 

steps to assure the United States department of education that this

 

state is on track to develop and implement a summative assessment

 

system as required by federal law.

 

     (6) (7) As used in this section, "English language arts" means

 

that term as defined in section 104b.

 

     Sec. 104d. (1) From the state school aid fund money

 

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

 

amount not to exceed $5,000,000.00 for providing reimbursement to

 

districts that purchase a computer-adaptive test for each student

 

enrolled in the district. In order to receive funding under this

 

section, the computer-adaptive test shall provide at least the

 

following:

 

     (a) Internet-delivered, standards-based assessment using a

 

computer-adaptive model to target the instructional level of each

 

pupil.

 

     (b) Unlimited testing opportunities throughout the 2015-2016

 

school year.

 

     (c) Valid and reliable diagnostic assessment data.

 

     (d) Adjustment of testing difficulty based on previous answers

 

to test questions.

 

     (e) Immediate feedback to pupils and teachers.

 

     (2) Reimbursement under this section shall be made to eligible

 

districts that purchase a computer-adaptive test described in

 

subsection (1) by October 15, 2015 and shall be made on an equal

 

per-pupil basis according to the available funding.


     (3) In order to receive reimbursement under this section, a

 

district shall demonstrate to the satisfaction of the department

 

that a qualifying computer-adaptive test was purchased by the

 

district by October 15, 2015.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $22,000,000.00 $29,000,000.00 for

 

2014-2015 2015-2016 for adult education programs authorized under

 

this section. Funds Except as otherwise provided under subsections

 

(16) and (18), 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, a program

 

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, a person an individual shall be enrolled in an adult basic

 

education program, an adult English as a second language program, a

 

general educational development (G.E.D.) test preparation program,

 

a job- or employment-related program, or a high school completion

 

program, that meets the requirements of this section, and for which

 

instruction is provided, and shall meet either of the following, as

 

applicable:

 

     (a) If the individual has obtained a high school diploma or a

 

general educational development (G.E.D.) certificate, the


individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (i) (ii) Is less than 20 years of age on September 1 of the

 

school year, is not attending an institution of higher education,

 

and is enrolled in a job- or employment-related program through a

 

referral by an employer or by a Michigan workforce agency.

 

     (ii) (iii) Is enrolled in an English as a second language

 

program.

 

     (iii) (iv) Is enrolled in a high school completion program.

 

     (iv) Is 20 years of age on September 1 of the school year, is

 

enrolled in an adult basic education program, and is determined by

 

a department-approved assessment, in a form and manner prescribed

 

by the department, to be below grade 9 level in reading or

 

mathematics, or both.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.

 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (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 10

 

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. The department shall ensure that the

 

funds allocated under this subsection for 2014-2015 will provide

 

services in 2014-2015 to at least the same number of individuals as

 

the number of individuals who were enrolled in programs funded

 

under this section in 2013-2014. For 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 2015-2016, 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). For 2016-2017, 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). 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 (ACS) from the United States census

 

bureau.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 (ACS) from the United States census bureau.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 (ACS) from the United States census

 

bureau.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 education advisory groups the talent

 

district career 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.

 

     (c) Collaborate with education advisory groups the talent

 

district career 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. All 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) (d) Report adult education program and participant data

 

and information as prescribed by the department.


     (6) The amount allocated under this section per full-time

 

equated participant shall not exceed $2,850.00 for a 450-hour

 

program. The amount shall be proportionately reduced for a program

 

offering less than 450 hours of instruction.

 

     (7) An adult basic 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 ninth 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 funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (11) 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.

 

     (8) A general educational development (G.E.D.) 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.

 

     (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 G.E.D. practice

 

test to determine the individual's potential for success on the

 

G.E.D. 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 (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant obtains the G.E.D.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) 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 (11) 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.

 

     (10) A job- or employment-related adult education 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 referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills, and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the department-approved assessment policy.

 

     (c) An individual may be enrolled in this program and the


grant recipient shall receive funding according to subsection (11)

 

until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Seventy-five Ninety percent for enrollment of eligible

 

participants.

 

     (b) Twenty-five Ten percent for 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 obtaining a G.E.D. or passage of 1 or more

 

individual G.E.D. 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.

 

     (12) 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 (7), (8), (9), or (10) 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.

 

     (13) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (14) 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.

 

     (15) 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.Department of Health and Human Services.

 

     (16) 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 under section 61a.

 

     (17) All intermediate district participant audits of adult

 

education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (18) From the amount appropriated in subsection (1), an amount

 

not to exceed $500,000.00 shall be allocated for 2015-2016 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 (19) and (20).

 

Funding under this subsection for 2015-2016 is for the first of 3

 

years of funding.

 

     (19) A pilot program funded under subsection (18) shall

 

require adult education staff to work with Michigan Works! 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.

 

     (20) A pilot program funded under subsection (18) shall have

 

on staff an adult education navigator who will serve as a

 

caseworker for each participant identified under subsection (19).

 

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.

 

     (21) Not later than December 1, 2016, the pilot program funded

 

under subsection (18) shall provide to the senate and house

 

appropriations subcommittees on school aid and to the senate and

 

house fiscal agencies a report detailing number of participants,

 

graduation rates, and a measure of transitioning to employment.

 

     (22) The department shall develop an application process for a

 

pilot program to be funded under subsection (18) and shall award

 

funding not later than November 1, 2015. Funding allocated under

 

subsection (18) may be paid on a schedule other than that specified

 

under section 17b.

 

     (23) (18) As used in this section:

 

     (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.

 

     (b) (a) "Department" means the Michigan strategic fund.

 

     (c) (b) "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.

 

     (d) (c) "Participant" means the sum of the number of full-time


equated individuals enrolled in and attending a department-approved

 

adult education program under this section, using quarterly

 

participant count days on the schedule described in section

 

6(7)(b).

 

     Sec. 147. (1) The allocation for 2014-2015 2015-2016 for the

 

public school employees' retirement system pursuant to the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1408, 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 2014-2015 2015-2016 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 33.41%, 36.31%, with 25.78% 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 32.33%, 35.09%, with

 

24.70% 24.56% 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 31.82%, 34.66%, with

 

24.19% 24.13% 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 28.59%, 31.49%, 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 29.10%, 31.92%, with 21.47% 21.39% 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 28.59%, 31.49%, 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 32.90%, 35.88%, with

 

25.27% 25.35% 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 38.1408.

 

     (4) The contribution rates in subsection (2) reflect an

 

amortization period of 24 23 years for 2014-2015. 2015-2016. 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. From the appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$100,000,000.00 for payments to participating districts. A district

 

that receives money under this section shall use that money solely

 

for the purpose of offsetting a portion of the retirement

 

contributions owed by the district for the fiscal year in which it

 

is received. The amount allocated to each participating district

 

under this section shall be based on each participating district's

 

percentage of the total statewide payroll for all participating

 

districts for the immediately preceding fiscal year. As used in

 

this section, "participating district" means a district that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1408, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     Sec. 147c. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$658,400,000.00 $892,900,000.00 from the state school aid fund ,

 

and there is appropriated for 2014-2015 an amount not to exceed


$18,000,000.00 from the MPSERS retirement obligation reform reserve

 

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 2014-2015 2015-

 

2016 an amount not to exceed $500,000.00 $600,000.00 for payments

 

to district libraries that are participating entities of the

 

Michigan public school employees' retirement system.

 

     (2) For 2014-2015, 2015-2016, the amounts allocated under

 

subsection (1) are estimated to provide an average MPSERS rate cap

 

per pupil amount of $449.00 $601.00 and are estimated to provide a

 

rate cap per pupil for districts ranging between $4.00 and

 

$2,056.00.$2,300.00.

 

     (3) Payments made under this section for 2014-2015 2015-2016

 

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.

 

     (4) The amount allocated to each participating entity under

 

this section 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 section shall

 

use the funds solely for the purpose of retirement contributions as

 

specified in subsection (5).

 

     (5) Each participating entity receiving funds under this

 

section shall forward an amount equal to the amount allocated under

 

subsection (4) to the retirement system in a form, manner, and time

 

frame determined by the retirement system.

 

     (6) Funds allocated under this section should be considered

 

when comparing a district's growth in total state aid funding from

 

1 fiscal year to the next.

 

     (7) Not later than October 20, 2014, December 20, 2015, the

 

department shall publish and post on its website an estimated

 

MPSERS rate cap per pupil for each district.

 

     (8) As used in this section:

 

     (a) "MPSERS rate cap per pupil" means an amount equal to the

 

quotient of the district's payment under this section divided by

 

the district's pupils in membership.

 

     (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.

 

     (c) "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.


     (d) "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. 152a. (1) As required by the court in the consolidated

 

cases known as Adair v State of Michigan, Michigan supreme court

 

docket nos. 137424 and 137453, from the state school aid fund money

 

appropriated in section 11 there is allocated for 2014-2015 2015-

 

2016 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. 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 teacher educator to teach in an

 

elementary or secondary school or in an adult basic education or

 

high school completion program.

 

     (b) A noncertificated counselor educator to provide counseling

 

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 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.

 

     (2) Except as provided in the revised school code, a district

 

or intermediate district employing teachers or counselors educators

 

not legally certificated or licensed shall have deducted the sum

 

equal to the amount paid the teachers or counselors educators for

 

the period of noncertificated, unlicensed, or illegal employment.

 

Each intermediate superintendent shall notify the department of the

 

name of the noncertificated teacher or counselor, or unlicensed

 

educator, and the district employing that individual and the amount

 

of salary the noncertificated teacher or counselor or unlicensed

 

educator 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, teacher or

 

counselor or unlicensed educator in violation of this section and

 

knowingly continues to employ that teacher or counselor, educator,

 

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. 201. (1) Subject to the conditions set forth in this

 

article, the amounts listed in this section are appropriated for

 

community colleges for the fiscal year ending September 30, 2015,

 

2016, from the funds indicated in this section. The following is a

 

summary of the appropriations in this section:

 

     (a) The gross appropriation is $364,724,900.00.

 

$393,825,600.00. After deducting total interdepartmental grants and


intradepartmental transfers in the amount of $0.00, the adjusted

 

gross appropriation is $364,724,900.00.$393,825,600.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $0.00.

 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues,

 

$364,724,900.00.$271,114,800.00.

 

     (v) State general fund/general purpose money,

 

$0.00.$122,710,800.00.

 

     (2) Subject to subsection (3), the amount appropriated for

 

community college operations is $307,191,300.00, $311,492,000.00,

 

allocated as follows:

 

     (a) The appropriation for Alpena Community College is

 

$5,390,700.00, $5,236,500.00 for operations and $154,200.00 for

 

performance funding.$5,464,400.00, $5,390,700.00 for operations and

 

$73,700.00 for performance funding.

 

     (b) The appropriation for Bay de Noc Community College is

 

$5,419,500.00, $5,279,300.00 for operations and $140,200.00 for

 

performance funding.$5,490,200.00, $5,419,500.00 for operations and

 

$70,700.00 for performance funding.

 

     (c) The appropriation for Delta College is $14,498,900.00,

 

$14,063,500.00 for operations and $435,400.00 for performance

 

funding.$14,704,000.00, $14,498,900.00 for operations and

 

$205,100.00 for performance funding.

 

     (d) The appropriation for Glen Oaks Community College is


$2,516,100.00, $2,441,500.00 for operations and $74,600.00 for

 

performance funding.$2,551,100.00, $2,516,100.00 for operations and

 

$35,000.00 for performance funding.

 

     (e) The appropriation for Gogebic Community College is

 

$4,451,400.00, $4,330,300.00 for operations and $121,100.00 for

 

performance funding.$4,509,900.00, $4,451,400.00 for operations and

 

$58,500.00 for performance funding.

 

     (f) The appropriation for Grand Rapids Community College is

 

$17,947,500.00, $17,454,900.00 for operations and $492,600.00 for

 

performance funding.$18,187,300.00, $17,947,500.00 for operations

 

and $239.800.00 for performance funding.

 

     (g) The appropriation for Henry Ford Community College is

 

$21,623,800.00, $21,060,000.00 for operations and $563,800.00 for

 

performance funding.$21,893,300.00, $21,623,800.00 for operations

 

and $269,500.00 for performance funding.

 

     (h) The appropriation for Jackson College is $12,087,300.00,

 

$11,758,200.00 for operations and $329,100.00 for performance

 

funding.$12,245,300.00, $12,087,300.00 for operations and

 

$158,000.00 for performance funding.

 

     (i) The appropriation for Kalamazoo Valley Community College

 

is $12,503,100.00, $12,122,500.00 for operations and $380,600.00

 

for performance funding.$12,689,400.00, $12,503,100.00 for

 

operations and $186,300.00 for performance funding.

 

     (j) The appropriation for Kellogg Community College is

 

$9,813,500.00, $9,522,000.00 for operations and $291,500.00 for

 

performance funding.$9,950,100.00, $9,813,500.00 for operations and

 

$136,600.00 for performance funding.


     (k) The appropriation for Kirtland Community College is

 

$3,167,700.00, $3,055,700.00 for operations and $112,000.00 for

 

performance funding.$3,221,500.00, $3,167,700.00 for operations and

 

$53,800.00 for performance funding.

 

     (l) The appropriation for Lake Michigan College is

 

$5,342,900.00, $5,178,100.00 for operations and $164,800.00 for

 

performance funding.$5,417,700.00, $5,342.900.00 for operations and

 

$74,800.00 for performance funding.

 

     (m) The appropriation for Lansing Community College is

 

$30,877,600.00, $30,023,700.00 for operations and $853,900.00 for

 

performance funding.$31,288,200.00, $30,877,600.00 for operations

 

and $410,600.00 for performance funding.

 

     (n) The appropriation for Macomb Community College is

 

$32,816,600.00, $31,931,200.00 for operations and $885,400.00 for

 

performance funding.$33,239,500.00, $32,816,600.00 for operations

 

and $422,900.00 for performance funding.

 

     (o) The appropriation for Mid Michigan Community College is

 

$4,682,000.00, $4,517,900.00 for operations and $164,100.00 for

 

performance funding.$4,757,700.00, $4,682,000.00 for operations and

 

$75,700.00 for performance funding.

 

     (p) The appropriation for Monroe County Community College is

 

$4,492,900.00, $4,342,600.00 for operations and $150,300.00 for

 

performance funding.$4,565,600.00, $4,492,900.00 for operations and

 

$72,700.00 for performance funding.

 

     (q) The appropriation for Montcalm Community College is

 

$3,226,700.00, $3,121,200.00 for operations and $105,500.00 for

 

performance funding.$3,280,600.00, $3,226,700.00 for operations and


$53,900.00 for performance funding.

 

     (r) The appropriation for C.S. Mott Community College is

 

$15,686,100.00, $15,247,100.00 for operations and $439,000.00 for

 

performance funding.$15,901,700.00, $15,686,100.00 for operations

 

and $215,600.00 for performance funding.

 

     (s) The appropriation for Muskegon Community College is

 

$8,901,000.00, $8,653,500.00 for operations and $247,500.00 for

 

performance funding.$9,020,700.00, $8,901,000.00 for operations and

 

$119,700.00 for performance funding.

 

     (t) The appropriation for North Central Michigan College is

 

$3,172,400.00, $3,064,400.00 for operations and $108,000.00 for

 

performance funding.$3,224,800.00, $3,172,400.00 for operations and

 

$52,400.00 for performance funding.

 

     (u) The appropriation for Northwestern Michigan College is

 

$9,078,800.00, $8,825,300.00 for operations and $253,500.00 for

 

performance funding.$9,200,500.00, $9,078,800.00 for operations and

 

$121,700.00 for performance funding.

 

     (v) The appropriation for Oakland Community College is

 

$21,123,300.00, $20,483,100.00 for operations and $640,200.00 for

 

performance funding.$21,429,400.00, $21,123,300.00 for operations

 

and $306,100.00 for performance funding.

 

     (w) The appropriation for St. Clair County Community College

 

is $7,061,600.00, $6,860,100.00 for operations and $201,500.00 for

 

performance funding.$7,158,000.00, $7,061,600.00 for operations and

 

$96,400.00 for performance funding.

 

     (x) The appropriation for Schoolcraft College is

 

$12,513,700.00, $12,112,200.00 for operations and $401,500.00 for


performance funding.$12,706,400.00, $12,513,700.00 for operations

 

and $192,700.00 for performance funding.

 

     (y) The appropriation for Southwestern Michigan College is

 

$6,576,400.00, $6,404,300.00 for operations and $172,100.00 for

 

performance funding.$6,657,600.00, $6,576,400.00 for operations and

 

$81,200.00 for performance funding.

 

     (z) The appropriation for Washtenaw Community College is

 

$13,077,300.00, $12,610,800.00 for operations and $466,500.00 for

 

performance funding.$13,301,100.00, $13,077,300.00 for operations

 

and $223,800.00 for performance funding.

 

     (aa) The appropriation for Wayne County Community College is

 

$16,727,600.00, $16,194,300.00 for operations and $533,300.00 for

 

performance funding.$16,989,800.00, $16,727,600.00 for operations

 

and $262,200.00 for performance funding.

 

     (bb) The appropriation for West Shore Community College is

 

$2,414,900.00, $2,349,800.00 for operations and $65,100.00 for

 

performance funding.$2,446,200.00, $2,414,900.00 for operations and

 

$31,300.00 for performance funding.

 

     (3) The amount appropriated in subsection (2) for community

 

college operations is $307,191,300.00, appropriated from the state

 

school aid fund.appropriated from the following:

 

     (a) State school aid fund, $244,581,200.00.

 

     (b) State general fund/general purpose money, $66,910,800.00.

 

     (4) From the appropriations described in subsection (1),

 

subject to section 207a, the amount appropriated for fiscal year

 

2014-2015 2015-2016 to offset certain fiscal year 2014-2015 2015-

 

2016 retirement contributions is $1,733,600.00, appropriated from


the state school aid fund.

 

     (5) From the appropriations described in subsection (1),

 

subject to section 207b, the amount appropriated for payments to

 

community colleges that are participating entities of the

 

retirement system is $52,300,000.00, $69,500,000.00, $17,200,000.00

 

appropriated from the state school aid fund and $52,300,000.00

 

appropriated from state general fund/general purpose money.

 

     (6) From the appropriations described in subsection (1),

 

subject to section 207c, the amount appropriated for renaissance

 

zone tax reimbursements is $3,500,000.00, $5,100,000.00,

 

$1,600,000.00 appropriated from the state school aid fund and

 

$3,500,000.00 appropriated from state general fund/general purpose

 

money.

 

     (7) From the appropriations described in subsection (1), the

 

amount appropriated for part-time, independent student grants is

 

$6,000,000.00, appropriated from the state school aid fund.

 

     Sec. 201a. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2016

 

2017 for the items listed in section 201. The fiscal year 2015-2016

 

2016-2017 appropriations are anticipated to be the same as those

 

for fiscal year 2014-2015, 2015-2016, except that the amounts will

 

be adjusted for changes in retirement costs, caseload and related

 

costs, federal fund match rates, economic factors, and available

 

revenue. These adjustments will be determined after the January

 

2015 2016 consensus revenue estimating conference.

 

     Sec. 206. The funds appropriated in section 201 are

 

appropriated for community colleges with fiscal years ending June


30, 2015 2016 and shall be paid out of the state treasury and

 

distributed by the state treasurer to the respective community

 

colleges in 11 monthly installments on the sixteenth of each month,

 

or the next succeeding business day, beginning with October 16,

 

2014. 2015. Each community college shall accrue its July and August

 

2015 2016 payments to its institutional fiscal year ending June 30,

 

2015. 2016. However, if the state budget director determines that a

 

community college failed to submit all verified Michigan community

 

colleges activities classification structure data for school year

 

2013-2014 2014-2015 to the workforce development agency by November

 

1, 2014, 2015, or failed to submit its longitudinal data system

 

data set for school year 2013-2014 2014-2015 to the center for

 

educational performance and information under section 219, the

 

state treasurer shall withhold the monthly installments from that

 

community college until those data are submitted. The state budget

 

director shall notify the chairs of the house and senate

 

appropriations subcommittees on community colleges at least 10 days

 

before withholding funds from any community college.

 

     Sec. 207a. All of the following apply to the allocation of the

 

fiscal year 2015-2016 appropriations described in section 201(4):

 

     (a) A community college that receives money under section

 

201(4) shall use that money solely for the purpose of offsetting a

 

portion of the retirement contributions owed by the college for the

 

that fiscal year. ending September 30, 2015.

 

     (b) The amount allocated to each participating community

 

college under section 201(4) shall be based on each participating

 

college's percentage of the total covered payroll covered by the


retirement system-covered payroll for all community colleges that

 

are participating colleges for in the immediately preceding fiscal

 

year. 2013-2014.

 

     Sec. 207b. All of the following apply to the allocation of the

 

fiscal year 2015-2016 appropriations described in section 201(5)

 

for payments to community colleges that are participating entities

 

of the retirement system:

 

     (a) The amount of a payment under section 201(5) shall be the

 

difference between the unfunded actuarial accrued liability

 

contribution rate as calculated under 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% under section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.

 

     (b) The amount allocated to each community college under

 

section 201(5) shall be based on each community college's

 

percentage of the total covered payroll for all community colleges

 

that are participating colleges in the immediately preceding fiscal

 

year. A community college that receives funds under this

 

subdivision shall use the funds solely for the purpose of

 

retirement contributions under section 201(5).

 

     (c) Each participating college that receives funds under

 

section 201(5) shall forward an amount equal to the amount

 

allocated under subdivision (b) to the retirement system in a form

 

and manner determined by the retirement system.

 

     Sec. 207c. All of the following apply to the allocation of the

 

appropriations described in section 201(6) to community colleges


described in section 12(3) of the Michigan renaissance zone act,

 

1996 PA 376, MCL 125.2692:

 

     (a) The amount allocated to each community college under

 

section 201(6) for fiscal year 2015-2016 shall be based on that

 

community college's proportion of total revenue lost by community

 

colleges in fiscal year 2013-2014 as a result of the exemption of

 

property taxes levied in 2015 under the Michigan renaissance zone

 

act, 1996 PA 376, MCL 125.2681 to 125.2696.

 

     (b) The appropriations described in section 201(6) shall be

 

made to each eligible community college within 60 days after the

 

department of treasury certifies to the state budget director that

 

it has received all necessary information to properly determine the

 

amounts of tax revenue lost by payable to each eligible community

 

college in fiscal year 2013-2014 under section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692.

 

     Sec. 209. (1) Within 30 days after the board of a community

 

college adopts its annual operating budget for the following school

 

fiscal year, or after the board adopts a subsequent revision to

 

that budget, the community college shall make all of the following

 

available through a link on its website homepage:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) A link to the most recent "Activities Classification

 

Structure Data Book and Companion".

 

     (c) General fund revenue and expenditure projections for

 

fiscal year 2014-2015 2015-2016 and fiscal year 2015-2016.2016-

 

2017.


     (d) A listing of all debt service obligations, detailed by

 

project, anticipated fiscal year 2014-2015 2015-2016 payment of

 

each project, and total outstanding debt.

 

     (e) The estimated cost to the community college resulting from

 

the patient protection and affordable care act, Public Law 111-148,

 

as amended by the health care and education reconciliation act of

 

2010, Public Law 111-152.

 

     (f) Links to all of the following for the community college:

 

     (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 of the

 

community college.

 

     (iii) Audits and financial reports for the most recent fiscal

 

year for which they are available.

 

     (iv) A copy of the board of trustees resolution regarding

 

compliance with best practices for the local strategic value

 

component described in section 230(2).

 

     (2) For statewide consistency and public visibility, community

 

colleges must use the icon badge provided by the department of

 

technology, management, and budget consistent with the icon badge

 

developed by the department of education for K-12 school districts.

 

It must appear on the front of each community college's homepage.

 

The size of the icon may be reduced to 150 x 150 pixels.

 

     (3) The state budget director shall determine whether a


community college has complied with this section. The state budget

 

director may withhold a community college's monthly installments

 

described in section 206 until the community college complies with

 

this section. The state budget director shall notify the chairs of

 

the house and senate appropriations subcommittee on community

 

colleges at least 10 days before withholding funds from any

 

community college.

 

     (4) Each community college shall report the following

 

information to the senate and house appropriations subcommittees on

 

community colleges, the senate and house fiscal agencies, and the

 

state budget office by November 15 of each fiscal year and post

 

that information on the internet its website as required under

 

subsection (1):

 

     (a) Budgeted fiscal year 2014-2015 2015-2016 general fund

 

revenue from tuition and fees.

 

     (b) Budgeted fiscal year 2014-2015 2015-2016 general fund

 

revenue from state appropriations.

 

     (c) Budgeted fiscal year 2014-2015 2015-2016 general fund

 

revenue from property taxes.

 

     (d) Budgeted fiscal year 2014-2015 2015-2016 total general

 

fund revenue.

 

     (e) Budgeted fiscal year 2014-2015 2015-2016 total general

 

fund expenditures.

 

     (5) By November 15 of each year, a community college shall

 

report the following information to the center for educational

 

performance and information and post the information on its website

 

under the budget transparency icon badge:


     (a) Opportunities for earning college credit through the

 

following programs:

 

     (i) State approved career and technical education or a tech

 

prep articulated program of study.

 

     (ii) Direct college credit or concurrent enrollment.

 

     (iii) Dual enrollment.

 

     (iv) An early college/middle college program.

 

     (b) For each program described in subdivision (a) that the

 

community college offers, all of the following information:

 

     (i) The number of high school students participating in the

 

program.

 

     (ii) The number of school districts that participate in the

 

program with the community college.

 

     (iii) Whether a college professor, qualified local school

 

district employee, or other individual teaches the course or

 

courses in the program.

 

     (iv) The total cost to the community college to operate the

 

program.

 

     (v) The cost per credit hour for the course or courses in the

 

program.

 

     (vi) The location where the course or courses in the program

 

are held.

 

     (vii) Instructional resources offered to the program

 

instructors.

 

     (viii) Resources offered to the student in the program.

 

     (ix) Transportation services provided to students in the

 

program.


     Sec. 210b. (1) It is the intent of the legislature that the

 

Michigan association of collegiate registrars and admissions

 

officers Association of Collegiate Registrars and Admissions

 

Officers implement any agreement or agreements among the community

 

colleges and universities concerning the transferability of college

 

courses resulting from the recommendations of the committee created

 

under former section 210a.

 

     (2) It is the intent of the legislature that the Michigan

 

association of collegiate registrars and admissions officers,

 

Association of Collegiate Registrars and Admissions Officers, the

 

Michigan community college association, Community College

 

Association, and the presidents council, state universities

 

Presidents Council, State Universities of Michigan shall together

 

submit an implementation update report to the senate and house

 

appropriations subcommittees on community colleges and higher

 

education, the senate and house fiscal agencies, and the state

 

budget director by March 1, 2015.2016.

 

     Sec. 210c. (1) A study committee shall be created to develop a

 

process to improve the transferability and applicability of

 

associate of arts and associate of science degrees as a block of

 

credits between community colleges and public universities on a

 

statewide basis. Building on the Michigan transfer network

 

sponsored by the Michigan Association of Collegiate Registrars and

 

Admissions Officers and, where possible, existing local

 

articulation agreements between individual institutions, the

 

committee shall work to explore standards for program articulation

 

between institutions so that an associate of arts and associate of


science degree earned at a community colleges is considered the

 

equivalent of the first 60 credits of a baccalaureate degree, and

 

those credits can be seamlessly transferred and applied to the

 

program of study at the receiving university.

 

     (2) It is the intent of the legislature that the study

 

committee created under subsection (1) will explore relevant issues

 

such as the satisfaction of all lower division general education

 

requirements, the applicability of equivalent courses to the major

 

program of study, junior-level standing at the university for

 

transfer students, and the completion of the baccalaureate degree

 

with a limit of 60 posttransfer credit hours. Because of the

 

legislature's interest in promoting degree completion, the study

 

committee should also consider incentives for students to complete

 

both an associate degree and a baccalaureate degree.

 

     (3) The study committee created under subsection (1) shall

 

consist of the following members:

 

     (a) Ten representatives from community colleges selected by

 

the Michigan Community College Association.

 

     (b) Ten representatives from public universities selected by

 

the Presidents Council, State Universities of Michigan.

 

     (c) Four members of the Michigan Association of Collegiate

 

Registrars and Admissions Officers.

 

     (d) One member of the Michigan house of representatives

 

selected by the speaker of the house.

 

     (e) One member of the Michigan house of representatives

 

selected by the minority leader of the house.

 

     (f) One member of the Michigan senate selected by the senate


majority leader.

 

     (g) One member of the Michigan senate selected by the senate

 

minority leader.

 

     (4) The study committee created under subsection (1) shall

 

submit a project status report and initial recommendations to the

 

senate and house appropriations subcommittees on community colleges

 

and higher education, the senate and house fiscal agencies, and the

 

state budget director by March 1, 2016.

 

     Sec. 210d. It is the intent of the legislature that community

 

colleges work with public universities in this state to implement

 

statewide reverse transfer agreements to increase the number of

 

students who are awarded credentials of value upon completion of

 

the necessary credits. These statewide agreements shall enable

 

students who have earned a significant number of credits at a

 

community college and transferred to a baccalaureate-granting

 

institution before completing a degree to transfer the credits

 

earned at the baccalaureate institution back to the community

 

college in order to be awarded a credential of value.

 

     Sec. 215. All of the following apply to the money appropriated

 

for part-time, independent student grants under section 201:

 

     (a) Payments of the amounts included in section 201 for part-

 

time, independent student grants shall be distributed pursuant to

 

1986 PA 102, MCL 390.1281 to 390.1288.

 

     (b) In order to increase the number of residents in this state

 

with a postsecondary credential, a community college that receives

 

funds from the part-time, independent student grants under section

 

201 is encouraged to prioritize these funds for aid to students who


have enrolled in an academic program after not being enrolled for

 

more than a semester or term, who have previously earned credits in

 

an academic program, and who have not yet earned a certificate or

 

degree.

 

     (c) The money appropriated for part-time, independent student

 

grants shall be paid out of the state treasury and shall be

 

distributed to the respective community colleges under a quarterly

 

payment system as follows: 50% shall be paid at the beginning of

 

the state's first fiscal quarter, 30% during the state's second

 

fiscal quarter, 10% during the state's third fiscal quarter, and

 

10% during the state's fourth fiscal quarter.

 

     (d) The department of treasury shall determine the needs

 

analysis criteria for students to qualify for part-time,

 

independent student grants. To be consistent with federal

 

requirements, the department of treasury may take student wages

 

into consideration when determining the amount of the award.

 

     Sec. 217. (1) The workforce development agency shall do all of

 

the following:

 

     (a) Establish, maintain, and coordinate the state community

 

college database commonly known as the "activities classification

 

structure" or "ACS" database.

 

     (b) Collect data concerning community colleges and community

 

college programs in this state, including data required by law.

 

     (c) Establish procedures to ensure the validity and

 

reliability of the data and the collection process.

 

     (d) Develop model data collection policies, including, but not

 

limited to, policies that ensure the privacy of any individual


student data. Privacy policies shall ensure that student social

 

security numbers are not released to the public for any purpose.

 

     (e) Provide data in a useful manner to allow state

 

policymakers and community college officials to make informed

 

policy decisions.

 

     (f) Assist community colleges in complying with audits under

 

this section or federal law.

 

     (2) There is created within the workforce development agency

 

the activities classification structure advisory committee. The

 

committee shall provide advice to the director of the workforce

 

development agency regarding the management of the state community

 

college database, including, but not limited to:

 

     (a) Determining what data are necessary to collect and

 

maintain to enable state and community college officials to make

 

informed policy decisions.

 

     (b) Defining the roles of all stakeholders in the data

 

collection system.

 

     (c) Recommending timelines for the implementation and ongoing

 

collection of data.

 

     (d) Establishing and maintaining data definitions, data

 

transmission protocols, and system specifications and procedures

 

for the efficient and accurate transmission and collection of data.

 

     (e) Establishing and maintaining a process for ensuring the

 

accuracy of the data.

 

     (f) Establishing and maintaining policies related to data

 

collection, including, but not limited to, privacy policies related

 

to individual student data.


     (g) Ensuring that the data are made available to state

 

policymakers and citizens of this state in the most useful format

 

possible.

 

     (h) Addressing other matters as determined by the director of

 

the workforce development agency or as required by law.

 

     (3) The activities classification structure advisory committee

 

created in subsection (2) shall consist of the following members:

 

     (a) One representative from the house fiscal agency, appointed

 

by the director of the house fiscal agency.

 

     (b) One representative from the senate fiscal agency,

 

appointed by the director of the senate fiscal agency.

 

     (c) One representative from the workforce development agency,

 

appointed by the director of the workforce development agency.

 

     (d) One representative from the state budget office, appointed

 

by the state budget director.

 

     (e) One representative from the governor's policy office,

 

appointed by that office.

 

     (f) Four representatives of the Michigan community colleges

 

association, Community College Association, appointed by the

 

president of the association. From the groupings of community

 

colleges given in table 17 of the activities classification

 

structure report database described in subsection (4), (1), the

 

association shall appoint 1 representative each from group 1, group

 

2, and group 3, and 1 representative from either group 3 or 4.

 

     (4) The activities classification structure advisory committee

 

shall review the existing activities classification structure

 

report, data, definitions, processes, and other items as needed and


publish an initial report on their findings and recommendations by

 

July 30, 2015. This report shall be submitted to the senate and

 

house appropriations subcommittees on community colleges, the

 

senate and house fiscal agencies, the director of the workforce

 

development agency, the state budget director, and the Michigan

 

community colleges association.

 

     Sec. 225. Each community college shall report to the house and

 

senate fiscal agencies, the state budget director, and the

 

workforce development agency by August 31, 2014, 2015, the tuition

 

and mandatory fees paid by a full-time in-district student and a

 

full-time out-of-district student as established by the college

 

governing board for the 2014-2015 2015-2016 academic year. This

 

report should also include the annual cost of attendance based on a

 

full-time course load of 30 credits. Each community college shall

 

also report any revisions to the reported 2014-2015 2015-2016

 

academic year tuition and mandatory fees adopted by the college

 

governing board to the house and senate fiscal agencies, the state

 

budget director, and the workforce development agency within 15

 

days of being adopted.

 

     Sec. 226. Each community college shall report to the workforce

 

development agency the numbers and type of associate degrees and

 

other certificates awarded during the previous fiscal year. The

 

report shall be made not later than November 15 of each year.

 

Community colleges shall work with the workforce development agency

 

and the center for educational performance and information to

 

develop a systematic approach for meeting this requirement.

 

     Sec. 229a. Included in the fiscal year 2014-2015 2015-2016


appropriations for the department of technology, management, and

 

budget are appropriations to provide funding for the state share of

 

costs for previously constructed capital projects for community

 

colleges. Those appropriations for state building authority rent

 

represent additional state general fund support for community

 

colleges, and the following is an estimate of the amount of that

 

support to each community college:

 

     (a) Alpena Community College, $485,400.00.$652,700.00.

 

     (b) Bay de Noc Community College, $636,600.00.$685,900.00.

 

     (c) Delta College, $2,842,800.00.$3,510,900.00.

 

     (d) Glen Oaks Community College, $123,300.00.$123,100.00.

 

     (e) Gogebic Community College, $16,900.00.$67,600.00.

 

     (f) Grand Rapids Community College,

 

$1,792,400.00.$2,126,000.00.

 

     (g) Henry Ford Community College, $1,030,800.00.$1,028,500.00.

 

     (h) Jackson College, $1,787,300.00.$1,677,800.00.

 

     (i) Kalamazoo Valley Community College,

 

$1,471,000.00.$1,557,700.00.

 

     (j) Kellogg Community College, $521,400.00.$520,200.00.

 

     (k) Kirtland Community College, $364,000.00.$363,200.00.

 

     (l) Lake Michigan College, $340,900.00.$340,200.00.

 

     (m) Lansing Community College, $610,100.00.$1,282,200.00.

 

     (n) Macomb Community College, $1,316,600.00.$1,377,400.00.

 

     (o) Mid Michigan Community College,

 

$1,117,300.00.$1,712,600.00.

 

     (p) Monroe County Community College,

 

$1,266,500.00.$1,263,600.00.


     (q) Montcalm Community College, $973,700.00.$971,500.00.

 

     (r) C.S. Mott Community College, $1,808,000.00.$1,803,900.00.

 

     (s) Muskegon Community College, $198,500.00.$267,800.00.

 

     (t) North Central Michigan College, $117,600.00.$469,400.00.

 

     (u) Northwestern Michigan College,

 

$1,308,600.00.$1,305,600.00.

 

     (v) Oakland Community College, $466,300.00.$465,200.00.

 

     (w) St. Clair County Community College,

 

$357,000.00.$356,200.00.

 

     (x) Schoolcraft College, $1,550,300.00.$1,546,700.00.

 

     (y) Southwestern Michigan College, $231,100.00.$286,900.00.

 

     (z) Washtenaw Community College, $1,680,600.00.$1,676,800.00.

 

     (aa) Wayne County Community College,

 

$1,466,000.00.$1,462,700.00.

 

     (bb) West Shore Community College, $578,600.00.$577,300.00.

 

     Sec. 230. (1) Money included in the appropriations for

 

community college operations under section 201(2) in fiscal year

 

2014-2015 2015-2016 for performance funding is distributed based on

 

the following formula:

 

     (a) Allocated proportionate to fiscal year 2013-2014 2014-2015

 

base appropriations, 50%.

 

     (b) Based on contact hour equated students, 10%.

 

     (c) Based on administrative costs, 7.5%.

 

     (d) Based on a weighted degree formula as provided for in the

 

2006 recommendations of the performance indicators task force,

 

17.5%.

 

     (e) Based on the local strategic value component, as developed


in cooperation with the Michigan community college association

 

Community College Association and described in subsection (2), 15%.

 

     (2) Money included in the appropriations for community college

 

operations under section 201(2) for local strategic value shall be

 

allocated to each community college that certifies to the state

 

budget director, through a board of trustees resolution on or

 

before October 15, 2014, 2015, that the college has met 4 out of 5

 

best practices listed in each category described in subsection (3).

 

The resolution shall provide specifics as to how the community

 

college meets each best practice measure within each category. One-

 

third of funding available under the strategic value component

 

shall be allocated to each category described in subsection (3).

 

Amounts distributed under local strategic value shall be on a

 

proportionate basis to each college's fiscal year 2013-2014 2014-

 

2015 operations funding. Payments to community colleges that

 

qualify for local strategic value funding shall be distributed with

 

the November installment payment described in section 206.

 

     (3) For purposes of subsection (2), the following categories

 

of best practices reflect functional activities of community

 

colleges that have strategic value to the local communities and

 

regional economies:

 

     (a) For Category A, economic development and business or

 

industry partnerships, the following:

 

     (i) The community college has active partnerships with local

 

employers including hospitals and health care providers.

 

     (ii) The community college provides customized on-site

 

training for area companies, employees, or both.


     (iii) The community college supports entrepreneurship through

 

a small business assistance center or other training or consulting

 

activities targeted toward small businesses.

 

     (iv) The community college supports technological advancement

 

through industry partnerships, incubation activities, or operation

 

of a Michigan technical education center or other advanced

 

technology center.

 

     (v) The community college has active partnerships with local

 

or regional workforce and economic development agencies.

 

     (b) For Category B, educational partnerships, the following:

 

     (i) The community college has active partnerships with

 

regional high schools, intermediate school districts, and career-

 

tech centers to provide instruction through dual enrollment,

 

concurrent enrollment, direct credit, middle college, or academy

 

programs.

 

     (ii) The community college hosts, sponsors, or participates in

 

enrichment programs for area K-12 students, such as college days,

 

summer or after-school programming, or science Olympiad.

 

     (iii) The community college provides, supports, or

 

participates in programming to promote successful transitions to

 

college for traditional age students, including grant programs such

 

as talent search, upward bound, or other activities to promote

 

college readiness in area high schools and community centers.

 

     (iv) The community college provides, supports, or participates

 

in programming to promote successful transitions to college for new

 

or reentering adult students, such as adult basic education,

 

general education development certificate preparation and testing,


or recruiting, advising, or orientation activities specific to

 

adults.

 

     (v) The community college has active partnerships with

 

regional 4-year colleges and universities to promote successful

 

transfer, such as articulation, 2+2, or reverse transfer agreements

 

or operation of a university center.

 

     (c) For Category C, community services, the following:

 

     (i) The community college provides continuing education

 

programming for leisure, wellness, personal enrichment, or

 

professional development.

 

     (ii) The community college operates or sponsors opportunities

 

for community members to engage in activities that promote leisure,

 

wellness, cultural or personal enrichment such as community sports

 

teams, theater or musical ensembles, or artist guilds.

 

     (iii) The community college operates public facilities to

 

promote cultural, educational, or personal enrichment for community

 

members, such as libraries, computer labs, performing arts centers,

 

museums, art galleries, or television or radio stations.

 

     (iv) The community college operates public facilities to

 

promote leisure or wellness activities for community members,

 

including gymnasiums, athletic fields, tennis courts, fitness

 

centers, hiking or biking trails, or natural areas.

 

     (v) The community college promotes, sponsors, or hosts

 

community service activities for students, staff, or community

 

members.

 

     (4) Payments for performance funding under section 201(2)

 

shall be made to a community college only if that community college


actively participates in the Michigan transfer network sponsored by

 

the Michigan Association of Collegiate Registrars and Admissions

 

Officers and submits timely updates, including updated course

 

equivalencies at least every 6 months, to the Michigan transfer

 

network. The state budget director shall determine if a community

 

college has not satisfied this requirement. The state budget

 

director may withhold payments for performance funding until a

 

community college is in compliance with this section.

 

     Sec. 230a. (1) A task force shall be formed by October 15,

 

2015 to review, evaluate, discuss, and make recommendations

 

regarding performance indicators established under the authority of

 

section 242 of 2005 PA 154. The task force shall review whether the

 

current metrics used are the most appropriate and reliable

 

performance indicators available and determine the most efficient

 

methodology for connecting state funding to those indicators.

 

     (2) The task force described in subsection (1) shall consist

 

of the following members:

 

     (a) Two members of the Michigan house of representatives. One

 

member shall be designated by the speaker of the house, and 1

 

member shall be designated by the house minority leader.

 

     (b) Two members of the Michigan senate. One member shall be

 

designated by the senate majority leader, and 1 member shall be

 

designated by the senate minority leader.

 

     (c) One representative from the department of technology,

 

management, and budget, designated by the state budget director.

 

     (d) Four representatives of Michigan public community

 

colleges. The Michigan Community College Association shall


designate 1 representative from each of the 4 groups described in

 

the activities classification structure data book published by the

 

workforce development agency.

 

     (3) The task force described in subsection (1) shall submit a

 

report containing its findings and recommendations to the house and

 

senate appropriations subcommittees on community colleges, the

 

house and senate fiscal agencies, and the state budget director by

 

January 15, 2016.

 

     Sec. 236. (1) Subject to the conditions set forth in this

 

article, the amounts listed in this section are appropriated for

 

higher education for the fiscal year ending September 30, 2015,

 

2016, from the funds indicated in this section. The following is a

 

summary of the appropriations in this section:

 

     (a) The gross appropriation is $1,516,496,300.00.

 

$1,541,219.200.00. After deducting total interdepartmental grants

 

and intradepartmental transfers in the amount of $0.00, the

 

adjusted gross appropriation is $1,516,496,300.00.

 

$1,541,219,200.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $97,026,400.00.

 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues,

 

$206,567,900.00.$205,279,500.00.

 

     (v) State general fund/general purpose money,

 

$1,212,902,000.00.$1,238,913,300.00.


     (2) Amounts appropriated for public universities are as

 

follows:

 

     (a) The appropriation for Central Michigan University is

 

$79,115,000.00, $73,540,100.00 for operations and $5,574,900.00 for

 

performance funding.$81,502,900.00, $79,164,800.00 for operations

 

and $2,338,100.00 for performance funding.

 

     (b) The appropriation for Eastern Michigan University is

 

$71,771,100.00, $67,275,400.00 for operations and $4,495,700.00 for

 

performance funding.$73,196,700.00, $71,782,500.00 for operations

 

and $1,414,200.00 for performance funding.

 

     (c) The appropriation for Ferris State University is

 

$49,087,000.00, $45,636,500.00 for operations and $3,450,500.00 for

 

performance funding.$50,606,700.00, $49,119,100.00 for operations

 

and $1,487,600.00 for performance funding.

 

     (d) The appropriation for Grand Valley State University is

 

$63,136,000.00, $57,823,500.00 for operations and $5,312,500.00 for

 

performance funding.$65,680,200.00, $63,156,500.00 for operations

 

and $2,523,700.00 for performance funding.

 

     (e) The appropriation for Lake Superior State University is

 

$12,782,500.00, $12,231,000.00 for operations and $551,500.00 for

 

performance funding.$13,247,300.00, $12,997,500.00 for operations

 

and $249,800.00 for performance funding.

 

     (f) The appropriation for Michigan State University is

 

$324,038,100.00, $249,597,800.00 for operations, $14,831,300.00 for

 

performance funding, $32,027,900.00 for MSU AgBioResearch, and

 

$27,581,100.00 for MSU extension.$330,391,700.00, $264,437,900.00

 

for operations, $5,152,600.00 for performance funding,


$32,668,500.00 for MSU AgBioResearch, and $28,132,700.00 for MSU

 

Extension.

 

     (g) The appropriation for Michigan Technological University is

 

$45,923,100.00, $43,473,800.00 for operations and $2,449,300.00 for

 

performance funding.$46,908,000.00, $45,938,000.00 for operations

 

and $970,000.00 for performance funding.

 

     (h) The appropriation for Northern Michigan University is

 

$44,277,200.00, $41,741,400.00 for operations and $2,535,800.00 for

 

performance funding.$45,254,400.00, $44,338,300.00 for operations

 

and $916,100.00 for performance funding.

 

     (i) The appropriation for Oakland University is

 

$48,364,100.00, $45,651,600.00 for operations and $2,712,500.00 for

 

performance funding.$50,021,000.00, $48,371,900.00 for operations

 

and $1,649,100.00 for performance funding.

 

     (j) The appropriation for Saginaw Valley State University is

 

$27,610,200.00, $25,991,000.00 for operations and $1,619,200.00 for

 

performance funding.$28,120,400.00, $27,621,600.00 for operations

 

and $498,800.00 for performance funding.

 

     (k) The appropriation for University of Michigan – Ann Arbor

 

is $295,174,100.00, $279,232,700.00 for operations and

 

$15,941,400.00 for performance funding.$300,874,900.00,

 

$295,178,500.00 for operations and $5,696,400.00 for performance

 

funding.

 

     (l) The appropriation for University of Michigan – Dearborn is

 

$23,689,300.00, $22,510,400.00 for operations and $1,178,900.00 for

 

performance funding.$24,095,700.00, $23,701,000.00 for operations

 

and $394,700.00 for performance funding.


     (m) The appropriation for University of Michigan – Flint is

 

$21,337,700.00, $19,938,200.00 for operations and $1,399,500.00 for

 

performance funding.$21,901,700.00, $21,359,600.00 for operations

 

and $542,100.00 for performance funding.

 

     (n) The appropriation for Wayne State University is

 

$190,519,800.00, $183,398,300.00 for operations and $7,121,500.00

 

for performance funding.$191,623,200.00, $190,529,900.00 for

 

operations and $1,093,300.00 for performance funding.

 

     (o) The appropriation for Western Michigan University is

 

$102,742,000.00, $97,279,000.00 for operations and $5,463,000.00

 

for performance funding.$104,633,700.00, $102,761,100.00 for

 

operations and $1,872,600.00 for performance funding.

 

     (3) The amount appropriated in subsection (2) for public

 

universities is appropriated from the following:

 

     (a) State school aid fund, $200,019,500.00.

 

     (b) State general fund/general purpose money,

 

$1,199,547,700.00.$1,228,039,000.00.

 

     (4) The amount appropriated for Michigan public school

 

employees' retirement system reimbursement is $2,446,200.00,

 

$5,160,000.00, appropriated from the state school aid fund.

 

     (5) For fiscal year 2014-2015 only, in addition to the amount

 

appropriated under subsection (4), $4,002,200.00 is appropriated

 

for Michigan public school employees' retirement system

 

reimbursement, appropriated from the state school aid fund.

 

     (5) (6) The amount appropriated for state and regional

 

programs is $2,295,000.00 $315,000.00, appropriated from general

 

fund/general purpose money and allocated as follows:


     (a) College access program, $2,000,000.00.

 

     (a) (b) Higher education database modernization and

 

conversion, $200,000.00.

 

     (b) (c) Midwestern higher education compact, Higher Education

 

Compact, $95,000.00.$115,000.00.

 

     (6) (7) The amount appropriated for the Martin Luther King,

 

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

 

appropriated from general fund/general purpose money and allocated

 

as follows:

 

     (a) Select student support services, $1,956,100.00.

 

     (b) Michigan college/university partnership program,

 

$586,800.00.

 

     (c) Morris Hood, Jr. educator development program,

 

$148,600.00.

 

     (7) (8) Subject to subsection (9), (8), the amount

 

appropriated for grants and financial aid is $105,494,200.00,

 

$104,994,200.00, allocated as follows:

 

     (a) State competitive scholarships, $18,361,700.00.

 

     (b) Tuition grants, $33,532,500.00.

 

     (c) Tuition incentive program, $48,500,000.00.

 

     (d) Children of veterans and officer's survivor tuition grant

 

programs, $1,400,000.00.

 

     (e) Project GEAR-UP, $3,200,000.00.

 

     (f) North American Indian tuition waivers, $500,000.00.

 

     (8) (9) The money appropriated in subsection (8) for grants

 

and financial aid is appropriated from the following:

 

     (a) Federal revenues under the United States department of


education, office of elementary and secondary education, Department

 

of Education, Office of Elementary and Secondary Education, GEAR-UP

 

program, $3,200,000.00.

 

     (b) Federal revenues under the social security act, temporary

 

assistance for needy families, $93,826,400.00.

 

     (c) Contributions to children of veterans tuition grant

 

program, $100,000.00.

 

     (d) State general fund/general purpose money,

 

$8,367,800.00.$7,867,800.00.

 

     Sec. 236a. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2016

 

2017 for the items listed in section 236. The fiscal year 2015-2016

 

2016-2017 appropriations are anticipated to be the same as those

 

for fiscal year 2014-2015, 2015-2016, except that the amounts will

 

be adjusted for changes in caseload and related costs, federal fund

 

match rates, economic factors, and available revenue. These

 

adjustments will be determined after the January 2015 2016

 

consensus revenue estimating conference.

 

     Sec. 236b. In addition to the funds appropriated in section

 

236, there is appropriated for grants and financial aid in fiscal

 

year 2014-2015 2015-2016 an amount not to exceed $6,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred under section 393(2)

 

of the management and budget act, 1984 PA 431, MCL 18.1393, for

 

another purpose under this article.

 

     Sec. 236c. In addition to the funds appropriated for fiscal

 

year 2014-2015 2015-2016 in section 236, appropriations to the


department of technology, management, and budget in the act

 

providing general appropriations for fiscal year 2014-2015 2015-

 

2016 for state building authority rent, totaling an estimated

 

$124,825,300.00, $135,995,300.00, provide funding for the state

 

share of costs for previously constructed capital projects for

 

state universities. These appropriations for state building

 

authority rent represent additional state general fund support

 

provided to public universities, and the following is an estimate

 

of the amount of that support to each university:

 

     (a) Central Michigan University, $9,103,200.00.$9,551,800.00.

 

     (b) Eastern Michigan University, $4,861,700.00.$4,860,900.00.

 

     (c) Ferris State University, $6,252,200.00.$6,251,200.00.

 

     (d) Grand Valley State University,

 

$4,252,500.00.$6,952,300.00.

 

     (e) Lake Superior State University,

 

$1,112,900.00.$1,720,300.00.

 

     (f) Michigan State University, $16,101,200.00.$16,549,200.00.

 

     (g) Michigan Technological University,

 

$7,444,600.00.$7,443,400.00.

 

     (h) Northern Michigan University, $8,016,400.00.$9,706,200.00.

 

     (i) Oakland University, $10,969,800.00.$12,993,400.00.

 

     (j) Saginaw Valley State University,

 

$9,777,400.00.$9,865,800.00.

 

     (k) University of Michigan - Ann Arbor,

 

$9,159,200.00.$9,607,800.00.

 

     (l) University of Michigan - Dearborn,

 

$6,296,200.00.$6,745,200.00.


     (m) University of Michigan - Flint,

 

$2,855,000.00.$3,104,000.00.

 

     (n) Wayne State University, $13,679,800.00.$15,703,000.00.

 

     (o) Western Michigan University,

 

$14,943,200.00.$14,940,800.00.

 

     Sec. 241. (1) Subject to section sections 244 and 265a, the

 

funds appropriated in section 236 to public universities shall be

 

paid out of the state treasury and distributed by the state

 

treasurer to the respective institutions in 11 equal monthly

 

installments on the sixteenth of each month, or the next succeeding

 

business day, beginning with October 16, 2014. 2015. Except for

 

Wayne State University, each institution shall accrue its July and

 

August 2015 2016 payments to its institutional fiscal year ending

 

June 30, 2015. 2016.

 

     (2) All public universities shall submit higher education

 

institutional data inventory (HEIDI) data and associated financial

 

and program information requested by and in a manner prescribed by

 

the state budget director. For public universities with fiscal

 

years ending June 30, 2014, 2015, these data shall be submitted to

 

the state budget director by October 15, 2014. 2015. Public

 

universities with a fiscal year ending September 30, 2014 2015

 

shall submit preliminary HEIDI data by November 15, 2014 2015 and

 

final data by December 15, 2014. 2015. If a public university fails

 

to submit HEIDI data and associated financial aid program

 

information in accordance with this reporting schedule, the state

 

treasurer may withhold the monthly installments under subsection

 

(1) to the public university until those data are submitted.


     Sec. 244. A public university receiving funds in section 236

 

shall cooperate with all measures taken by the state to develop,

 

operate, and maintain the statewide P-20 longitudinal data system

 

described in section 94a. If the state budget director finds that a

 

university has not complied with this section, the state budget

 

director is authorized to withhold the monthly installments

 

provided to that university under section 236 241 until he or she

 

finds the university has complied with this section.

 

     Sec. 246. (1) All of the following apply to the allocation of

 

the fiscal year 2015-2016 appropriations described in section

 

236(4) for payments to universities that are participating entities

 

of the Michigan public school employees retirement system:

 

     (a) The funds appropriated in section 236 236(4) for Michigan

 

public school employees' retirement system reimbursement shall be

 

allocated to each participating public university under this

 

section based on each participating public university's percentage

 

of the total combined payrolls of the universities' employees who

 

are members of the retirement system and who were hired before

 

January 1, 1996 and the universities' employees who would have been

 

members of the retirement system on or after January 1, 1996, but

 

for the enactment of 1995 PA 272 for all public universities that

 

are participating public universities for the immediately preceding

 

state fiscal year.

 

     (b) The amount of a payment under section 236(4) shall be

 

equal to the difference between the unfunded actuarial accrued

 

liability contribution rate for university reporting units as

 

calculated under 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 25.73%

 

included in section 41 of the public school employees retirement

 

act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer

 

rate for university reporting units of 25.73% under section 41 of

 

the public school employees retirement act of 1979, 1980 PA 300,

 

MCL 38.1341. Payments shall be made in a form and manner determined

 

by the office of retirement services.

 

     (c) A public university that receives money under this section

 

236(4) shall use that money solely for the purpose of offsetting a

 

portion of the retirement contributions. owed by the university.

 

Each participating university that receives funds under section

 

236(4) shall forward an amount equal to the amount received under

 

section 236(4) to the Michigan public school employees retirement

 

system in a form and manner determined by the office of retirement

 

services.

 

     (2) As used in this section, "participating public university"

 

means a public university 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

 

38.1408, 38.1437, and that pays contributions to the Michigan

 

public school employees' retirement system for the state fiscal

 

year.

 

     Sec. 252. (1) The amounts appropriated in section 236 for the

 

state tuition grant program shall be distributed pursuant to 1966

 

PA 313, MCL 390.991 to 390.997a.

 

     (2) Tuition grant awards shall be made to all eligible


Michigan residents enrolled in undergraduate degree programs who

 

are qualified and who apply before July 1 of each year for the next

 

academic year.

 

     (3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

 

subject to subsections (7) and (8), the department of treasury

 

shall determine an actual maximum tuition grant award per student,

 

which shall be no less than $1,512.00, that ensures that the

 

aggregate payments for the tuition grant program do not exceed the

 

appropriation contained in section 236 for the state tuition grant

 

program. If the department determines that insufficient funds are

 

available to establish a maximum award amount equal to at least

 

$1,512.00, the department shall immediately report to the house and

 

senate appropriations subcommittees on higher education, the house

 

and senate fiscal agencies, and the state budget director regarding

 

the estimated amount of additional funds necessary to establish a

 

$1,512.00 maximum award amount. If the department determines that

 

sufficient funds are available to establish a maximum award amount

 

equal to at least $1,512.00, the department shall immediately

 

report to the house and senate appropriations subcommittees on

 

higher education, the house and senate fiscal agencies, and the

 

state budget director regarding the maximum award amount

 

established and the projected amount of any projected year-end

 

appropriation balance based on that maximum award amount. By

 

December 15, and again by February 18 of each fiscal year, the

 

department shall analyze the status of award commitments, shall

 

make any necessary adjustments, and shall confirm that those award

 

commitments will not exceed the appropriation contained in section


236 for the tuition grant program. The determination and actions

 

shall be reported to the state budget director and the house and

 

senate fiscal agencies no later than the final day of February of

 

each year. If award adjustments are necessary, the students shall

 

be notified of the adjustment by March 4 of each year.

 

     (4) Any unexpended and unencumbered funds remaining on

 

September 30, 2015 2016 from the amounts appropriated in section

 

236 for the tuition grant program for fiscal year 2014-2015 2015-

 

2016 shall not lapse on September 30, 2015, 2016, but shall

 

continue to be available for expenditure for tuition grants

 

provided in the 2015-2016 2016-2017 fiscal year under a work

 

project account. The use of these unexpended fiscal year 2014-2015

 

2015-2016 funds shall terminate at the end of the 2015-2016 2016-

 

2017 fiscal year.

 

     (5) The department of treasury shall continue a proportional

 

tuition grant maximum award level for recipients enrolled less than

 

full-time in a given semester or term.

 

     (6) If the department of treasury increases the maximum award

 

per eligible student from that provided in the previous fiscal

 

year, it shall not have the effect of reducing the number of

 

eligible students receiving awards in relation to the total number

 

of eligible applicants. Any increase in the maximum grant shall be

 

proportional for all eligible students receiving awards for that

 

fiscal year.

 

     (7) Except as provided in subsection (4), the department of

 

treasury shall not award more than $3,200,000.00 in tuition grants

 

to eligible students enrolled in the same independent nonprofit


college or university in this state. Any decrease in the maximum

 

grant shall be proportional for all eligible students enrolled in

 

that college or university, as determined by the department.

 

     (8) The department of treasury shall not award tuition grants

 

to otherwise eligible students enrolled in an independent college

 

or university that does not report, in a form and manner directed

 

by and satisfactory to the department of treasury, by August 31

 

September 30 of each year, beginning with August 31, 2015, all of

 

the following:

 

     (a) The number of students in the most recently completed

 

academic year that who in any academic year received a state

 

tuition grant at the reporting institution and successfully

 

completed a program or graduated.

 

     (b) The number of students in the most recently completed

 

academic year that who in any academic year received a state

 

tuition grant at the reporting institution and took a remedial

 

education class.

 

     (c) The number of students in the most recently completed

 

academic year that who in any academic year received a Pell grant

 

at the reporting institution and successfully completed a program

 

or graduated.

 

     Sec. 254. The sums appropriated in section 236 for the state

 

competitive scholarship, tuition incentive, and tuition grant

 

programs student financial aid programs under this article shall be

 

paid out of the state treasury and shall be distributed to the

 

respective institutions under a quarterly payment system as

 

follows: 50% shall be paid at the beginning of the state's first


fiscal quarter, 30% during the state's second fiscal quarter, 10%

 

during the state's third fiscal quarter, and 10% during the state's

 

fourth fiscal quarter.

 

     Sec. 255. The department of treasury shall determine the needs

 

analysis criteria for students to qualify for the state competitive

 

scholarship program and tuition grant program. student financial

 

aid programs under this article. To be consistent with federal

 

requirements, the department of treasury may take student wages

 

into consideration when determining the amount of the award.

 

     Sec. 258. By February 15 of each year, the department of

 

treasury shall post to its publicly available website a report for

 

the preceding fiscal year on all student financial aid programs for

 

which funds are appropriated in section 201 or section 236. For

 

each student financial aid program, the report shall include, but

 

is not limited to, the total number of awards paid in the preceding

 

fiscal year, the total dollar amount of those awards, and the

 

number of students receiving awards and the total amount of those

 

awards at each eligible postsecondary institution. To the extent

 

information is available, the report shall also include information

 

on household income and other demographic characteristics of

 

students receiving awards under each program and historical

 

information on the number of awards and total award amounts for

 

each program.

 

     Sec. 263. (1) Included in the appropriation in section 236 for

 

fiscal year 2014-2015 2015-2016 for MSU AgBioResearch is

 

$2,982,900.00 and included in the appropriation in section 236 for

 

MSU extension Extension is $2,645,200.00 for project Project


GREEEN. Project GREEEN is intended to address critical regulatory,

 

food safety, economic, and environmental problems faced by this

 

state's plant-based agriculture, forestry, and processing

 

industries. "GREEEN" is an acronym for generating research and

 

extension to meet environmental and economic needs.

 

     (2) The department of agriculture and rural development and

 

Michigan State University, in consultation with agricultural

 

commodity groups and other interested parties, shall develop

 

project Project GREEEN and its program priorities.

 

     Sec. 263a. (1) Not later than September 30 of each year,

 

Michigan State University shall submit a report on MSU

 

AgBioResearch and MSU extension Extension to the house and senate

 

appropriations subcommittees on agriculture and on higher

 

education, the house and senate standing committees on agriculture,

 

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

 

for the preceding academic fiscal year.

 

     (2) The report required under subsection (1) shall include all

 

of the following:

 

     (a) Total funds expended by MSU AgBioResearch and by MSU

 

extension service Extension identified by state, local, private,

 

federal, and university fund sources.

 

     (b) The metric goals that were used to evaluate the impacts of

 

programs operated by MSU extension Extension and MSU AgBioResearch.

 

It is the intent of the legislature that the following metric goals

 

will be used to evaluate the impacts of those programs:

 

     (i) Increasing the number of agriculture and food-related

 

firms collaborating with and using services of research and


extension faculty and staff by 3% per year.

 

     (ii) Increasing the number of individuals utilizing MSU

 

extension's Extension's educational services by 5% per year.

 

     (iii) Increasing external funds generated in support of

 

research and extension, beyond state appropriations, by 10% over

 

the amounts generated in the past 3 state fiscal years.

 

     (iv) Increasing the sector's total economic impact from

 

today's $71,000,000,000.00 to at least $100,000,000,000.00.

 

     (v) Doubling Increasing Michigan's agricultural exports from

 

$1,750,000,000.00 to at least $3,500,000,000.00.

 

     (vi) Increasing jobs in the food and agriculture sector by

 

10%.

 

     (vii) Improving access by Michigan consumers to healthy foods

 

by 20%.

 

     (c) A review of major programs within both MSU AgBioResearch

 

and MSU extension Extension with specific reference to

 

accomplishments, impacts, and the metrics described in subdivision

 

(b), including a specific accounting of Project GREEEN expenditures

 

and the impact of those expenditures.

 

     Sec. 264. Included in the appropriation in section 236 for

 

fiscal year 2014-2015 2015-2016 for Michigan State University is

 

$80,000.00 for the Michigan future farmers of America association.

 

Future Farmers of America Association. This $80,000.00 allocation

 

shall not supplant any existing support that Michigan State

 

University provides to the Michigan future farmers of America

 

association.Future Farmers of America Association.

 

     Sec. 265. (1) Payments under section 265a for performance


funding shall only be made to a public university that certifies to

 

the state budget director by August 31, 2014 2015 that its board

 

did not adopt an increase in tuition and fee rates for resident

 

undergraduate students after September 1, 2013 2014 for the 2013-

 

2014 2014-2015 academic year and that its board will not adopt an

 

increase in tuition and fee rates for resident undergraduate

 

students for the 2014-2015 2015-2016 academic year that is greater

 

than 3.2%. 2.8%. As used in this subsection:

 

     (a) Subject to subdivision (c), "fee" means any board-

 

authorized fee that will be paid by more than 1/2 of all resident

 

undergraduate students at least once during their enrollment at a

 

public university. A university increasing a fee that applies to a

 

specific subset of students or courses shall provide sufficient

 

information to prove that the increase applied to that subset will

 

not cause the increase in the average amount of board-authorized

 

total tuition and fees paid by resident undergraduate students in

 

the 2014-2015 2015-2016 academic year to exceed the limit

 

established in this subsection.

 

     (b) "Tuition and fee rate" means the average of full-time

 

rates for all undergraduate classes, based on an average of the

 

rates authorized by the university board and actually charged to

 

students, deducting any uniformly-rebated or refunded amounts, for

 

the 2 semesters with the highest levels of full-time equated

 

resident undergraduate enrollment during the academic year.

 

     (c) For purposes of subdivision (a), for a public university

 

that compels resident undergraduate students to be covered by

 

health insurance as a condition to enroll at the university, "fee"


includes the annual amount a student is charged for coverage by the

 

university-affiliated group health insurance policy if he or she

 

does not provide proof that he or she is otherwise covered by

 

health insurance. This subdivision does not apply to limited

 

subsets of resident undergraduate students to be covered by health

 

insurance for specific reasons other than general enrollment at the

 

university.

 

     (2) The state budget director shall implement uniform

 

reporting requirements to ensure that a public university receiving

 

a payment under section 265a for performance funding has satisfied

 

the tuition restraint requirements of this section. The state

 

budget director shall have the sole authority to determine if a

 

public university has met the requirements of this section.

 

Information reported by a public university to the state budget

 

director under this subsection shall also be reported to the house

 

and senate appropriations subcommittees on higher education and the

 

house and senate fiscal agencies.

 

     Sec. 265a. (1) Appropriations to public universities in

 

section 236 for fiscal year 2014-2015 2015-2016 for performance

 

funding shall be paid only to a public university that complies

 

with section 265 and certifies to the state budget director, the

 

house and senate appropriations subcommittees on higher education,

 

and the house and senate fiscal agencies by August 31, 2014 2015

 

that it complies with all of the following requirements:

 

     (a) The university participates in reverse transfer agreements

 

described in section 286 with at least 3 Michigan community

 

colleges or has made a good-faith effort to enter into reverse


transfer agreements.

 

     (b) The university does not and will not consider whether dual

 

enrollment credits earned by an incoming student were utilized

 

towards his or her high school graduation requirements when making

 

a determination as to whether those credits may be used by the

 

student toward completion of a university degree or certificate

 

program.

 

     (c) The university participates in the Michigan transfer

 

network Transfer Network created as part of the Michigan

 

association of collegiate registrars and admissions officers

 

Association of Collegiate Registrars and Admissions Officers

 

transfer agreement.

 

     (2) Any performance funding amounts under section 236 that are

 

not paid to a public university because it did not comply with 1 or

 

more requirements under subsection (1) are unappropriated and

 

reappropriated for performance funding to those public universities

 

that meet the requirements under subsection (1), distributed in

 

proportion to their performance funding appropriation amounts under

 

section 236.

 

     (3) The state budget director shall report to the house and

 

senate appropriations subcommittees on higher education and the

 

house and senate fiscal agencies by September 17, 2014, 30, 2015,

 

regarding any performance funding amounts that are not paid to a

 

public university because it did not comply with 1 or more

 

requirements under subsection (1) and any reappropriation of funds

 

under subsection (2).

 

     (4) Performance funding amounts described in section 236 are


distributed based on the following formula:

 

     (a) Proportional to each university's share of total

 

operations funding appropriated in fiscal year 2010-2011, 50.0%.

 

     (a) (b) Based on weighted undergraduate completions in

 

critical skills areas, 11.1%.22.2%

 

     (b) (c) Based on research and development expenditures, for

 

universities classified in Carnegie classifications as

 

doctoral/research universities, research universities (high

 

research activity), or research universities (very high research

 

activity) only, 5.6%.11.1%.

 

     (c) (d) Based on 6-year graduation rate, total degree

 

completions, and institutional support as a percentage of core

 

expenditures, and the percentage of students receiving Pell grants,

 

scored against national Carnegie classification peers and weighted

 

by total undergraduate fiscal year equated students, 33.3%.66.7%.

 

     (5) For purposes of determining the score of a university

 

under subsection (4)(d), (4)(c), each university is assigned 1 of

 

the following scores:

 

     (a) A university classified as in the top 20%, a score of 3.

 

     (b) A university classified as above national median, a score

 

of 2.

 

     (c) A university classified as improving, a score of 2. It is

 

the intent of the legislature that, beginning in the 2015-2016

 

2016-2017 state fiscal year, a university classified as improving

 

is assigned a score of 1.

 

     (d) A university that is not included in subdivision (a), (b),

 

or (c), a score of 0.


     (6) For purposes of this section, "Carnegie classification"

 

shall mean the basic classification of the university according to

 

the most recent version of the Carnegie classification of

 

institutions of higher education, published by the Carnegie

 

foundation for the advancement of teaching.Foundation for the

 

Advancement of Teaching.

 

     Sec. 267. All public universities shall submit the amount of

 

tuition and fees actually charged to a full-time resident

 

undergraduate student for academic year 2014-2015 2015-2016 as part

 

of their higher education institutional data inventory (HEIDI) data

 

by August 31 of each year. A public university shall report any

 

revisions for any semester of the reported academic year 2014-2015

 

2015-2016 tuition and fee charges to HEIDI within 15 days of being

 

adopted.

 

     Sec. 268. (1) For the fiscal year ending September 30, 2014,

 

it is the intent of the legislature that funds be allocated for

 

unfunded North American Indian tuition waiver costs incurred by

 

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

 

from the general fund.

 

     (2) Appropriations in section 236(8)(f) for North American

 

Indian tuition waivers shall be paid to universities under section

 

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

 

amounts included in university operations appropriations. If funds

 

are insufficient to support the entire cost of waivers, amounts

 

shall be prorated.

 

     (1) (3) By February 15 of each year, the department of civil

 

rights shall annually submit to the state budget director, the


house and senate appropriations subcommittees on higher education,

 

and the house and senate fiscal agencies a report on North American

 

Indian tuition waivers for the preceding fiscal year that includes,

 

but is not limited to, all of the following information for each

 

postsecondary institution:

 

     (a) The total number of waiver applications.

 

     (b) The total number of waivers granted and the monetary value

 

of each waiver.

 

     (c) The number of students who withdraw from classes.

 

     (d) The number of students who successfully complete a degree

 

or certificate program and the 6-year graduation rate.

 

     (2) A public university that receives funds in section 236

 

shall provide to the department of civil rights any information

 

necessary to prepare the report described in subsection (1).

 

     Sec. 269. For fiscal year 2014-2015, 2015-2016, from the

 

amount appropriated in section 236 to Central Michigan University

 

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

 

College for the costs of waiving tuition for North American Indians

 

under 1976 PA 174, MCL 390.1251 to 390.1253.

 

     Sec. 270. For fiscal year 2014-2015 2015-2016, from the amount

 

appropriated in section 236 to Lake Superior State University for

 

operations, $100,000.00 shall be paid to Bay Mills Community

 

College for the costs of waiving tuition for North American Indians

 

under 1976 PA 174, MCL 390.1251 to 390.1253.

 

     Sec. 274. It is the intent of the legislature that public and

 

private organizations that conduct human embryonic stem cell

 

derivation subject to section 27 of article I of the state


constitution of 1963 will provide information to the director of

 

the department of community health by December 1, 2014 2015 that

 

includes all of the following:

 

     (a) Documentation that the organization conducting human

 

embryonic stem cell derivation is conducting its activities in

 

compliance with the requirements of section 27 of article I of the

 

state constitution of 1963 and all relevant national institutes of

 

health National Institutes of Health guidelines pertaining to

 

embryonic stem cell derivation.

 

     (b) A list of all human embryonic stem cell lines submitted by

 

the organization to the national institutes of health National

 

Institutes of Health for inclusion in the human embryonic stem cell

 

registry Human Embryonic Stem Cell Registry before and during

 

fiscal year 2013-2014, 2014-2015, and the status of each submission

 

as approved, pending approval, or review completed but not yet

 

accepted.

 

     (c) Number of human embryonic stem cell lines derived and not

 

submitted for inclusion in the human embryonic stem cell registry,

 

Human Embryonic Stem Cell Registry, before and during fiscal year

 

2013-2014.2014-2015.

 

     Sec. 276. (1) Included in the appropriation for fiscal year

 

2014-2015 2015-2016 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

future faculty program that is intended to increase the pool of

 

academically or economically disadvantaged candidates pursuing

 

faculty teaching careers in postsecondary education. Preference may

 

not be given to applicants on the basis of race, color, ethnicity,


gender, or national origin. Institutions should encourage

 

applications from applicants who would otherwise not adequately be

 

represented in the graduate student and faculty populations. Each

 

public university shall apply the percentage change applicable to

 

every public university in the calculation of appropriations in

 

section 236 to the amount of funds allocated to the future faculty

 

program.

 

     (2) The program shall be administered by each public

 

university in a manner prescribed by the workforce development

 

agency. The workforce development agency shall use a good faith

 

effort standard to evaluate whether a fellowship is in default.

 

     Sec. 277. (1) Included in the appropriation for fiscal year

 

2014-2015 2015-2016 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

college day program that is intended to introduce academically or

 

economically disadvantaged schoolchildren to the potential of a

 

college education. Preference may not be given to participants on

 

the basis of race, color, ethnicity, gender, or national origin.

 

Public universities should encourage participation from those who

 

would otherwise not adequately be represented in the student

 

population.

 

     (2) Individual program plans of each public university shall

 

include a budget of equal contributions from this program, the

 

participating public university, the participating school district,

 

and the participating independent degree-granting college. College

 

day funds shall not be expended to cover indirect costs. Not more

 

than 20% of the university match shall be attributable to indirect


costs. Each public university shall apply the percentage change

 

applicable to every public university in the calculation of

 

appropriations in section 236 to the amount of funds allocated to

 

the college day program.

 

     (3) The program described in this section shall be

 

administered by each public university in a manner prescribed by

 

the workforce development agency.

 

     Sec. 278. (1) Included in section 236 for fiscal year 2014-

 

2015 2015-2016 is funding for the Martin Luther King, Jr. - Cesar

 

Chavez - Rosa Parks select student support services program for

 

developing academically or economically disadvantaged student

 

retention programs for 4-year public and independent educational

 

institutions in this state. Preference may not be given to

 

participants on the basis of race, color, ethnicity, gender, or

 

national origin. Institutions should encourage participation from

 

those who would otherwise not adequately be represented in the

 

student population.

 

     (2) An award made under this program to any 1 institution

 

shall not be greater than $150,000.00, and the amount awarded shall

 

be matched on a 70% state, 30% college or university basis.

 

     (3) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 279. (1) Included in section 236 for fiscal year 2014-

 

2015 2015-2016 is funding for the Martin Luther King, Jr. - Cesar

 

Chavez - Rosa Parks college/university partnership program between

 

4-year public and independent colleges and universities and public

 

community colleges, which is intended to increase the number of


academically or economically disadvantaged students who transfer

 

from community colleges into baccalaureate programs. Preference may

 

not be given to participants on the basis of race, color,

 

ethnicity, gender, or national origin. Institutions should

 

encourage participation from those who would otherwise not

 

adequately be represented in the transfer student population.

 

     (2) The grants shall be made under the program described in

 

this section to Michigan public and independent colleges and

 

universities. An award to any 1 institution shall not be greater

 

than $150,000.00, and the amount awarded shall be matched on a 70%

 

state, 30% college or university basis.

 

     (3) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 280. (1) Included in the appropriation for fiscal year

 

2014-2015 2015-2016 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

visiting professors program which is intended to increase the

 

number of instructors in the classroom to provide role models for

 

academically or economically disadvantaged students. Preference may

 

not be given to participants on the basis of race, color,

 

ethnicity, gender, or national origin. Public universities should

 

encourage participation from those who would otherwise not

 

adequately be represented in the student population.

 

     (2) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 281. (1) Included in the appropriation for fiscal year

 

2014-2015 2015-2016 in section 236 is funding under the Martin


Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

 

Morris Hood, Jr. educator development program which is intended to

 

increase the number of academically or economically disadvantaged

 

students who enroll in and complete K-12 teacher education programs

 

at the baccalaureate level. Preference may not be given to

 

participants on the basis of race, color, ethnicity, gender, or

 

national origin. Institutions should encourage participation from

 

those who would otherwise not adequately be represented in the

 

teacher education student population.

 

     (2) The program described in this section shall be

 

administered by each state-approved teacher education institution

 

in a manner prescribed by the workforce development agency.

 

     (3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program described in this section.

 

     Enacting section 1. (1) In accordance with section 30 of

 

article IX of the state constitution of 1963, total state spending

 

from state sources 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 2014 PA 196, 2015 PA 5, and this amendatory act for

 

fiscal year 2014-2015 is estimated at $11,864,647,400.00 and state

 

appropriations for school aid to be paid to local units of

 

government for fiscal year 2014-2015 are estimated at

 

$11,705,999,600.00. In accordance with section 30 of article IX of

 

the state constitution of 1963, total state spending from state

 

sources 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 for fiscal year 2015-2016 is estimated at

 

$12,193,294,700.00 and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2015-2016 are

 

estimated at $12,032,877,700.00.

 

     (2) In accordance with section 30 of article IX of the state

 

constitution of 1963, total state spending from state sources for

 

community colleges for fiscal year 2015-2016 under article II of

 

the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to

 

388.1830, as amended by this amendatory act, is estimated at

 

$393,825,600.00 and the amount of that state spending from state

 

sources to be paid to local units of government for fiscal year

 

2015-2016 is estimated at $393,825.600.00.

 

     (3) In accordance with section 30 of article IX of the state

 

constitution of 1963, total state spending from state sources for

 

higher education for fiscal year 2015-2016 under article III of the

 

state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1893,

 

as amended by this amendatory act, is estimated at

 

$1,444,192,800.00 and the amount of that state spending from state

 

sources to be paid to local units of government for fiscal year

 

2015-2016 is estimated at $0.00.

 

     Enacting section 2. Sections 12, 22c, 22g, 22j, 31b, 32r, 64c,

 

64d, 74a, 99b, 147d, 213, 259, 262a, 272a, 273, and 274a of the

 

state school aid act of 1979, 1979 PA 94, MCL 388.1612, 388.1622c,

 

388.1622g, 388.1622j, 388.1631b, 388.1632r, 388.1664c, 388.1664d,

 

388.1674a, 388.1699b, 388.1747d, 388.1813, 388.1859, 388.1862a,

 

388.1872a, 388.1873, and 388.1874a, are repealed effective October


1, 2015.

 

     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2015.

 

     (2) Sections 11, 18a, and 95a of the state school aid act of

 

1979, 1979 PA 94, MCL 388.1611, 388.1618a, and 388.1695a, as

 

amended by this amendatory act, take effect upon enactment of this

 

amendatory act.