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

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 146

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

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

 

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

 

above the eighth grade or a child enrolled and in regular

 

attendance in a publicly funded prekindergarten setting. For the

 

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

 

"elementary pupil" includes children enrolled in a preschool

 

program operated by a district in its facilities.

 

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

 

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

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall must be

 

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

 

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

 

department shall prescribe pupil, personnel, and other reporting

 

requirements for the educational program.

 

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

 

October 1 and continues through September 30.

 

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

 

granted for the successful completion of a high school equivalency

 

test.

 

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

 

developed by the GED Testing Service, the Test Assessing Secondary

 

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

 

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

 

another comparable test approved by the department of talent and

 

economic development.

 

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

 

program that has high school level courses in English language

 

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

 

individual to successfully complete a high school equivalency test.

 

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

 

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

 

eighth grade.

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve serves all constituent districts within an

 

intermediate district or shall serve serves several districts with

 

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

 

addition, special education center program pupils placed part-time

 

in noncenter programs to comply with the least restrictive

 

environment provisions of section 1412 of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

report of the number of pupils, excluding adult education

 

participants, in the district for the immediately preceding school

 

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

 

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

or other credential of equal status.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the pupil membership

 

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

 

times the final audited count from the supplemental count day for

 

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

 

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

 

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

 

the pupil membership count day in a strict discipline academy

 

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

 

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

 

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

 

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

 

actually enrolled and in regular daily attendance in the community

 

district on the pupil membership count day for the current school

 

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

 

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

 

actually enrolled and in regular daily attendance in the community

 

district for the immediately preceding school year. plus the final

 

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

 

to 12 actually enrolled and in regular daily attendance in the

 

education achievement system for the immediately preceding school

 

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

 

the department and calculated by adding the number of pupils

registered for attendance plus pupils received by transfer and

 

minus pupils lost as defined by rules promulgated by the

 

superintendent, and as corrected by a subsequent department audit.

 

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

 

determined under section 20. In making the calculation of

 

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

 

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

 

or an intermediate district:

 

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

 

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

 

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

 

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

 

full-time equated membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

any district.

 

     (c) A special education pupil educated by the intermediate

 

district shall be is counted in membership in the intermediate

 

district.

 

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

program of a juvenile detention facility, a child caring

 

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

 

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

 

district or intermediate district approved by the department to

 

operate the program.

 

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

 

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

 

district of residence.

 

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

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to under section 690 of the revised

 

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

 

the pupil's district of residence.

 

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

 

counted in membership in the public school academy.

 

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

 

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

 

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

 

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

 

school's educational program is considered regular daily

 

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

 

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

 

considered regular daily attendance. For the purposes of this

 

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

 

sequential learning, participation means that term as defined in

 

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

counting pupils in membership-subsection 10.

 

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

 

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

 

or partial fiscal years of operation shall be is determined as

 

follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

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

 

immediately preceding supplemental count day any pupils who are

 

counted in the public school academy on that first pupil membership

 

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

 

preceding supplemental count day.

 

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

 

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

 

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

 

is counted in membership.

 

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

 

minimum age requirement to be eligible to attend school under

 

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

 

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

 

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

 

except as follows:

 

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

 

instruction in a special education program or service approved by

 

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

 

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

 

year shall be is counted in membership.

 

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

 

of the following may be counted in membership:

 

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

 

education high school diploma program, that is primarily focused on

 

educating pupils with extreme barriers to education, such as being

 

homeless as defined under 42 USC 11302.

 

     (B) Had dropped out of school.

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

 

current school year.

 

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

 

be eligible to attend school for that school year under section

 

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

 

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

 

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

 

parent or legal guardian has notified the district in writing that

 

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

 

school year.

 

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

 

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

 

a high school equivalency certificate shall not be is not counted

 

in membership unless the individual is a student with a disability

 

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

 

individual participating in a job training program funded under

 

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

 

107b, administered by the department of talent and economic

 

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

 

programs, shall not be is not counted in membership.

 

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

 

academy is also educated by a district or intermediate district as

 

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

 

counted in membership only in the public school academy unless a

 

written agreement signed by all parties designates the party or

 

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

 

the instructional time scheduled for the pupil in the district or

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

 

membership determination under subdivision (q) and section 101.

 

However, for pupils receiving instruction in both a public school

 

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

 

part of a cooperative education program, the following apply:

 

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

 

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

 

school academy shall receive receives as its prorated share of the

 

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

 

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

 

school academy provides divided by the number of hours required

 

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

 

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

 

allocated to the district or intermediate district providing the

 

remainder of the hours of instruction.

 

     (ii) If the public school academy provides instruction for

 

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

 

district or intermediate district providing the remainder of the

 

hours of instruction shall receive receives as its prorated share

 

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

 

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

 

district or intermediate district provides divided by the number of

 

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

 

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

 

shall be is allocated to the public school academy.

 

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

 

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

education program shall not be is not counted in membership if

 

there are also adult education participants being educated in the

 

same program or classroom.

 

     (p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

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

 

equated memberships shall must be consistent with section 101. In

 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution or for pupils engaged in an

 

internship or work experience under section 1279h of the revised

 

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

 

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

 

effect of his or her postsecondary enrollment or engagement in the

 

internship or work experience, including necessary travel time, on

 

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

 

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

 

shall be are determined by dividing the number of instructional

 

hours scheduled and provided per year per kindergarten pupil by the

 

same number used for determining full-time equated memberships for

 

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

 

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

 

evidence satisfactory to the department that it used federal title

 

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

 

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

 

kindergarten shall be are determined by dividing the number of

 

class hours scheduled and provided per year per kindergarten pupil

 

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

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

 

counting of full-time equated memberships for pupils in

 

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

 

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

 

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

 

public school academy in the immediately preceding school year, the

 

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

 

membership is the average of the number of those pupils enrolled

 

and in regular daily attendance on the pupil membership count day

 

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

 

determined by the department. Membership shall be is calculated by

 

adding the number of pupils registered for attendance in that grade

 

level on the pupil membership count day plus pupils received by

 

transfer and minus pupils lost as defined by rules promulgated by

 

the superintendent, and as corrected by subsequent department

 

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

 

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

 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

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

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 

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

 

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

 

be providing appropriate instruction if all of the following are

 

met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies that are comparable to those otherwise provided in the

 

district's alternative education program.

 

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

 

alternative education program.

 

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

 

pupil's transcript.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

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

 

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

 

count day to include the pupil in the count.

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

 

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

 

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

 

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

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

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

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

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

 

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

 

shall be is considered to be the membership figure calculated under

 

this subdivision. If a district educates and counts in its

 

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

 

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

 

the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

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

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 

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

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

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

 

who are not enrolled in kindergarten but are enrolled in a

 

classroom program under R 340.1754 of the Michigan Administrative

 

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

 

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

 

memberships for special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 or R 340.1862 of the Michigan

 

Administrative Code shall be are determined by dividing the number

 

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

 

180.

 

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

 

Labor Day who is enrolled in an intermediate district program that

 

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

 

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

 

but not attended by the pupil before Labor Day.

 

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

 

membership on the pupil membership count day in a middle college

 

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

 

membership on the pupil membership count day and on the

 

supplemental count day for the current school year, as determined

 

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

counted in membership by the operating district on the immediately

 

preceding supplemental count day, the pupil shall be is excluded

 

from the district's immediately preceding supplemental count for

 

the purposes of determining the district's membership.

 

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

 

who attends a United States Olympic Education Center may count the

 

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

 

resident of this state.

 

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

 

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

 

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

 

educating district.

 

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

 

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

 

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

 

that the district operating the program reports that the pupil was

 

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

 

special membership counting provisions under this subdivision and

 

the operation of the other membership counting provisions under

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

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

 

unless both of the following are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

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

 

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

 

pupil.

 

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

 

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

 

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

 

adjust the membership count of the district or other public school

 

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

 

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

 

to ensure that the district or other public school academy receives

 

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

 

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

 

supplemental count day of the preceding school year.

 

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

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

 

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

 

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

 

the district and resumes regular daily attendance during that

 

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

 

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

 

attendance on the pupil membership count day.

 

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

 

counted in membership in the community district.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

with this state if all of the following are met:

 

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

 

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

 

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

 

that act.

 

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

 

definition of an eligible course under the postsecondary enrollment

 

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

 

were provided by an eligible postsecondary institution under that

 

act.

     (iii) The department determines that the college or university

 

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

 

comparable to a state university or community college, as those

 

terms are defined in section 3 of the postsecondary enrollment

 

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

 

nonprofit degree-granting college or university.

 

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

 

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

 

equal to the eligible charges that the district or public school

 

academy would pay to an eligible postsecondary institution under

 

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

 

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

 

act.

 

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

 

credit to a pupil who successfully completes a course as described

 

in this subdivision.

 

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

 

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

 

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

 

instructional days and hours required under section 101 and the

 

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

 

school diploma and at least 60 transferable college credits or is

 

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

 

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

 

a particular fiscal year, as otherwise calculated under this

 

subsection, includes pupils counted in membership who are enrolled

 

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

this subdivision:

 

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

 

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

 

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

 

counted in membership under section 166b in the immediately

 

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

 

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

 

must not exceed 10%.

 

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

 

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

 

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

 

counted in membership under section 166b in the immediately

 

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

 

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

 

exceed the greater of the following:

 

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

 

for pupils not counted in membership under section 166b.

 

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

 

membership for pupils counted under section 166b in the immediately

 

preceding fiscal year.

 

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

 

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

 

must be applied to the combined total membership for pupils counted

 

in those districts for the fiscal year immediately preceding the

 

consolidation or annexation.

 

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

 

intermediate district, or public school academy charges tuition for

a pupil that resided out of state in the immediately preceding

 

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

 

district, intermediate district, or public school academy.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

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

 

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

 

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

 

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

 

following:

 

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

 

accordance with section 166b.

 

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

 

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

 

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

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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

 

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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil's enrollment in the Michigan Virtual School.

 

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

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

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

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic Education

 

Center.

 

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

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

 

school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 

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

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

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

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

attendance on the pupil membership count day or supplemental count

 

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

 

is enrolled within 30 calendar days after the pupil membership

 

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

 

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

 

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

 

public school academy before the pupil membership count day or

 

supplemental count day of a particular year but was expelled or

 

suspended on the pupil membership count day or supplemental count

 

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

 

the pupil resumed attendance in the district, intermediate

 

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

 

membership count day or supplemental count day of that particular

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

 

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

 

prorated membership for the classes the pupil attended. For

 

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

 

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

 

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

 

380.1233b, or an individual working under a valid substitute

 

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

 

together and instruction is taking place.

 

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

 

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

 

24.328.

 

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

 

1976 PA 451, MCL 380.1 to 380.1852.

 

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

 

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

 

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

 

membership for the immediately preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

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

 

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

 

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

 

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

 

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

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

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

 

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

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

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

 

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

 

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

 

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

 

basis of classroom instruction.

 

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

 

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

 

district, or other entity under this article.

 

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

assign a district code to each public school academy that is

 

authorized under the revised school code and is eligible to receive

 

funding under this article within 30 days after a contract is

 

submitted to the department by the authorizing body of a public

 

school academy.

 

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

 

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

 

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

 

shall use to make payments under this article to the newly

 

authorized public school academy shall be is a number that is

 

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

 

public school academy located in the same county as the newly

 

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

 

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

 

newly authorized public school academy, then the district code to

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

in excess of 200.

 

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

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

 

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

 

community college other than a federal tribally controlled

 

community college, or other authorizing body that is not empowered

 

to authorize a school of excellence to operate statewide and is

 

eligible to receive funding under this article, all of the

 

following apply:

 

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

 

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

 

is located.

 

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

 

specific location, the intermediate district that would normally

 

provide programs and services to the school district in which the

 

administrative office of the cyber school is located shall provide

 

programs and services to the cyber school. The intermediate school

 

district required to provide programs and services to a cyber

 

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

 

cyber school is in operation.

 

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

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

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

 

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

 

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

 

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

 

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

 

MPSERS retirement obligation reform reserve fund, and an amount not

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

 

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

 

the public schools of this state and certain other state purposes

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

appropriated for the public schools of this state and certain other

 

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

 

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

 

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

 

community district education trust fund created under section 12 of

 

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

 

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

 

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

 

water emergency reserve fund. In addition, all available federal

 

funds are appropriated each fiscal year for the fiscal years ending

 

September 30, 2018 2019 and September 30, 2019.2020.

 

     (2) The appropriations under this section shall be are

 

allocated as provided in this article. Money appropriated under

this section from the general fund shall must be expended to fund

 

the purposes of this article before the expenditure of money

 

appropriated under this section from the state school aid fund.

 

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

 

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

 

the school aid stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (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 must be expended only for purposes for which state school aid

 

fund money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

investments.

 

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

 

a fiscal year shall remain remains in the school aid stabilization

 

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

 

balance or the general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

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

 

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

 

school aid stabilization fund is insufficient to fully fund an

 

amount equal to the projected shortfall, the state budget director

 

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

 

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

 

shortfall shall must be prorated in the manner provided under

 

section 296(3).

 

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

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this article.

 

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

 

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

 

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

 

the department of treasury on behalf of districts and intermediate

districts. Notwithstanding section 296 or any other provision of

 

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

 

proration and shall must be paid in full.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2019-2020 an amount not to exceed $24,000,000.00 $56,000,000.00 for

 

fiscal year cash-flow borrowing costs solely related to the state

 

school aid fund established by section 11 of article IX of the

 

state constitution of 1963.

 

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

 

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

 

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

 

children who reside within the boundaries of a district with the

 

majority of its territory located within the boundaries of a city

 

for which an executive proclamation of emergency is issued in the

 

current or immediately preceding 3 fiscal years under the emergency

 

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

 

appropriated in section 11, there is allocated for fiscal year

 

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

for the purposes of this section.

 

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

 

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

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding 3 4

 

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

 

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

 

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

 

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

 

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

 

social workers. The district shall provide a report to the

 

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

 

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

 

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

 

house and senate fiscal agencies, and the state budget director

 

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

 

the following information:

 

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

 

under this subsection.

 

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

 

personnel.

 

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

 

in subdivision (b).

 

     (d) Any other information the department considers necessary

 

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

 

appropriate levels and types of services.

 

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

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

 

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

 

district described in subsection (2) to provide state early

 

intervention services for children described in subsection (1) who

 

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

 

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

 

provide state early intervention services that are similar to the

 

services described in the early on Michigan state plan, including

 

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

 

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

 

evaluated at least twice annually.

 

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

 

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

 

intermediate district described in subsection (3) to enroll

 

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

 

readiness programs, regardless of household income eligibility

 

requirements contained in section 32d. The department shall

 

administer this funding consistent with all other provisions that

 

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

 

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

 

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

 

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

 

described in subsection (1).

 

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

 

appropriated in this section, there is appropriated an amount not

 

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

 

state restricted contingency funds. These contingency funds are not

available for expenditure until they have been transferred to a

 

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

 

and budget act, 1984 PA 431, MCL 18.1393.

 

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

 

payments under this section shall be paid on a schedule determined

 

by the department.

 

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

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

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

 

district has received more than its proper apportionment, the

 

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

 

next apportionment. Notwithstanding any other provision in this

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

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

 

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

 

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

 

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

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

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

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

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

 

department affects the current fiscal year membership, the

 

department shall adjust affected payments shall be adjusted in the

 

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

 

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

 

result of information obtained by the department from the district,

 

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

 

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

 

apportionments when the adjustment is finalized. At the request of

 

the district and upon the district presenting evidence satisfactory

 

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

 

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

 

to the district otherwise authorized under this article if the

 

district would otherwise experience a significant hardship in

 

satisfying its financial obligations. However, a district that has

 

presented satisfactory evidence of hardship and is undergoing an

 

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

 

of extended adjustment as originally granted by the department.

 

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

 

department's designee or because of new or updated information

 

received by the department, the department determines that the

 

amount paid to a district or intermediate district under this

 

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

 

incorrect, the department shall make the appropriate deduction or

 

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

the next apportionment after the adjustment is finalized. The

 

department shall calculate the deduction or payment shall be

 

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

 

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

 

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

 

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

 

any deduction otherwise applicable shall must be satisfied from the

 

proceeds of a loan to the district under the emergency municipal

 

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

 

of millage levied or pledged under section 1211 of the revised

 

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

 

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

 

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

 

district or intermediate district employed an educator in violation

 

of certification requirements under the revised school code and

 

rules promulgated by the department, the department shall prorate

 

the adjustment according to the period of noncompliance with the

 

certification requirements.

 

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

 

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

 

and the immediately preceding fiscal year of all records related to

 

a program for which a district or intermediate district has

 

received funds under this article.

 

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

 

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

 

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

 

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

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

 

2019-2020 for obligations in excess of applicable appropriations an

 

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

 

amounts available from overpayments.

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, other supplies, and any other school

 

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

 

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

 

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

 

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

 

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

 

not be applied or taken A district or other entity shall not apply

 

or take the money for a purpose other than as provided in this

 

section. The department shall determine the reasonableness of

 

expenditures and may withhold from a recipient of funds under this

 

article the apportionment otherwise due upon a violation by the

 

recipient.

 

     (2) A district or intermediate district shall adopt an annual

 

budget in a manner that complies with the uniform budgeting and

 

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

 

after a district board adopts its annual operating budget for the

 

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

 

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

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

 

may make the information available through a link on its

 

intermediate district's website homepage, in a form and manner

 

prescribed by the department:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

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

 

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

 

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

 

following 2 visual displays:

 

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

 

following subcategories:

 

     (A) Salaries and wages.

 

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

 

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

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

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

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

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

 

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

 

any other type of benefits that would constitute health care

 

services, offered to any bargaining unit or employee in the

 

district.

 

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

 

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

 

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

 

health benefit act, 2007 PA 106, MCL 124.75.

 

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

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

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

 

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

 

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

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

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

 

benefit included in the compensation package for the superintendent

 

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

 

exceeds $100,000.00.

 

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

 

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

 

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

 

in section 5 of 1978 PA 472, MCL 4.415.

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under the

 

revised school code.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

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

 

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

 

individual's authorized use of the credit card.

 

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

 

the school administrator of the district that is fully or partially

 

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

 

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

 

individual on the trip, destination, and purpose.

 

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

 

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

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) For the purposes of determining the reasonableness of

 

expenditures, whether a district or intermediate district has

 

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

 

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

 

apply:

 

     (a) The department shall require that each district and

 

intermediate district have an audit of the district's or

 

intermediate district's financial and pupil accounting records

 

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

 

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

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

 

certified public accountant or by the intermediate district

 

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

 

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

 

accountant, the intermediate superintendent, or the auditor general

 

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

 

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

 

immediately preceding fiscal years.

 

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

 

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

 

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

 

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

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

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

 

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

 

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

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

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

 

audit shall must include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

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

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

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

 

1 each year for reporting the prior fiscal year data:

 

     (i) A district shall file the annual financial audit reports

 

with the intermediate district and the department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall enter the pupil

 

membership audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

     (f) The annual financial audit reports and pupil accounting

 

procedures reports shall must be available to the public in

 

compliance with the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246.

 

     (g) Not later than January 31 of each year, the department

 

shall notify the state budget director and the legislative

 

appropriations subcommittees responsible for review of the school

 

aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures

 

report required under this section for the school year ending in

 

the immediately preceding fiscal year.

 

     (5) By November 1 each fiscal year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

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

 

financial statements and consistent with accounting manuals and

 

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

intermediate district, the report shall must also contain the

 

website address where the department can access the report required

 

under section 620 of the revised school code, MCL 380.620. The

 

department shall ensure that the prescribed Michigan public school

 

accounting manual chart of accounts includes standard conventions

 

to distinguish expenditures by allowable fund function and object.

 

The functions shall must include at minimum categories for

 

instruction, pupil support, instructional staff support, general

 

administration, school administration, business administration,

 

transportation, facilities operation and maintenance, facilities

 

acquisition, and debt service; and shall must include object

 

classifications of salary, benefits, including categories for

 

active employee health expenditures, purchased services, supplies,

 

capital outlay, and other. Districts A district shall report the

 

required level of detail consistent with the manual as part of the

 

comprehensive annual financial report.

 

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

 

intermediate district shall file with the center the special

 

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

 

the manner prescribed by the center. An intermediate district shall

 

certify the audit of a district's report.

 

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

 

district shall file with the center the audited transportation

 

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

 

prescribed by the center. An intermediate district shall certify

 

the audit of a district's report.

 

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

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

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

 

property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.

 

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

 

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

 

determines that the financial data required under subsection (5)

 

are not consistent with audited financial statements, the

 

department shall withhold all state school aid due to the district

 

or intermediate district under this article, beginning with the

 

next payment due to the district or intermediate district, until

 

the district or intermediate district complies with subsections

 

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

 

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

 

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

 

district forfeits the amount withheld.

 

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

 

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

 

total state school aid due to the district or intermediate district

 

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

 

district or intermediate district, until the district or

 

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

 

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

 

end of the fiscal year, the district or intermediate district

 

forfeits the amount withheld.

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

 

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

 

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

 

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

 

district shall submit to the department a report that details the

 

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

 

and virtual learning model. The report shall must include

 

information concerning the operation of virtual learning for the

 

immediately preceding school fiscal year, including information

 

concerning summer programming. Information must be collected in a

 

form and manner determined by the department and must be collected

 

in the most efficient manner possible to reduce the administrative

 

burden on reporting entities.

 

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

 

the house and senate appropriations subcommittees on state school

 

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

 

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

 

virtual courses available under section 21f and virtual courses

 

provided by a school of excellence that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551.

 

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

 

the following:

 

     (a) Virtual courses provided by the Michigan Virtual

 

University.

 

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

 

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

 

code, MCL 380.551.

     (c) Virtual courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

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

 

intermediate district.

 

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

 

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

 

with this section.

 

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

 

department shall submit to the senate and house subcommittees on

 

school aid and to the senate and house standing committees on

 

education an itemized list of allocations under this article to any

 

association or consortium consisting of associations in the

 

immediately preceding fiscal year. The report shall detail the

 

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

 

which the funds were distributed.

 

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

 

apply:

 

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

 

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

 

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

 

     (2) The department shall calculate the amount of each

 

district's foundation allowance shall be calculated as provided in

 

this section, using a basic target foundation allowance in the

 

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

 

calculations, a reference to the target foundation allowance for a

 

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

 

foundation allowance for that fiscal year.

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

 

department shall calculate the amount of a district's foundation

 

allowance shall be calculated as follows, using in all calculations

 

the total amount of the district's foundation allowance as

 

calculated before any proration:

 

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

 

district that had a foundation allowance for the immediately

 

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

 

foundation allowance for the immediately preceding state fiscal

 

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

 

immediately preceding state fiscal year, the district shall receive

 

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

 

the district's foundation allowance for the immediately preceding

 

state fiscal year plus the difference between twice the dollar

 

amount of the adjustment from the immediately preceding state

 

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

 

target foundation allowance and [(the difference between the basic

 

target foundation allowance for the current state fiscal year and

 

basic target foundation allowance for the immediately preceding

 

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

 

district's foundation allowance for the immediately preceding state

 

fiscal year and the minimum foundation allowance for the

 

immediately preceding state fiscal year) divided by the difference

 

between the basic target foundation allowance for the current state

 

fiscal year and the minimum foundation allowance for the

 

immediately preceding state fiscal year.] However, the foundation

 

allowance for a district that had less than the basic target

foundation allowance for the immediately preceding state fiscal

 

year shall must not exceed the basic target foundation allowance

 

for the current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

target foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive receives a foundation

 

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

 

target foundation allowance for 2018-2019.2019-2020.

 

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

 

immediately preceding state fiscal year that was greater than the

 

basic target foundation allowance for the immediately preceding

 

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

 

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

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic target foundation allowance for the current

 

state fiscal year, as compared to the immediately preceding state

 

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

 

for the immediately preceding state fiscal year times the

 

percentage increase in the United States consumer price index

 

Consumer Price Index in the calendar year ending in the immediately

 

preceding fiscal year as reported by the May revenue estimating

 

conference conducted under section 367b of the management and

 

budget act, 1984 PA 431, MCL 18.1367b.

 

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

 

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

foundation allowance shall be rounded up to the nearest whole

 

dollar.

 

     (e) For a district that received a foundation allowance

 

supplemental payment calculated under section 20m and paid under

 

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

 

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

 

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

 

calculated under this section plus the lesser of the per pupil

 

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

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year times the percentage increase in the United States consumer

 

price index in the calendar year ending in the immediately

 

preceding fiscal year as reported by the May revenue estimating

 

conference conducted under section 367b of the management and

 

budget act, 1984 PA 431, MCL 18.1367b.

 

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

 

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

 

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

 

or the basic target foundation allowance for the current state

 

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

 

district's foundation allowance. For a district described in

 

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

 

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

 

plus the difference between the district's foundation allowance for

 

the current state fiscal year and the district's foundation

 

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

foundation allowance. For a district that has a millage reduction

 

required under section 31 of article IX of the state constitution

 

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

 

district's foundation allowance shall be calculated as if that

 

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

 

operating taxes continue to be levied on behalf of a dissolved

 

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

 

receiving district to satisfy debt obligations of the dissolved

 

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

 

the taxable value per membership pupil of property in the receiving

 

district used for the purposes of this subsection does not include

 

the taxable value of property within the geographic area of the

 

dissolved district. For a community district, if school operating

 

taxes continue to be levied by a qualifying school district under

 

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

 

geographic area as the community district, the taxable value per

 

membership pupil of property in the community district to be used

 

for the purposes of this subsection does not include the taxable

 

value of property within the geographic area of the community

 

district.

 

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

 

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

 

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

 

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

 

the allocation calculated under this section shall be is based on

 

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

 

residence or the foundation allowance of the educating district.

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

 

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

 

district of residence, the allocation calculated under this section

 

shall be is based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

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

 

residence. The calculation under this subsection shall take into

 

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

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

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

 

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

 

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

 

school district, the allocation calculated under this section is an

 

amount per membership pupil other than special education pupils in

 

the public school academy equal to the foundation allowance of the

 

district that authorized the public school academy or the state

 

maximum public school academy allocation, whichever is less.

 

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

 

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

 

local school operating revenue per membership pupil other than

 

special education pupils for the district in which the public

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

 

foundation allowance, shall not have that allocation is not reduced

 

as a result of the 2010 amendment to this subsection.

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall must be

 

adjusted by multiplying that amount per membership pupil by the

 

number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

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

 

calculation shall must not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

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

 

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

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

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

 

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

 

geographic area as the community district.

 

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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

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

 

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

or affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

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

 

subsequent consolidation or annexation that affects the district.

 

The calculation under this subsection shall take into account a

 

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

 

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

 

making calculations under this section shall be rounded to the

 

fourth decimal place and shall round the dollar amount of an

 

increase in the basic target foundation allowance shall be rounded

 

to the nearest whole dollar.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

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

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

dividing the estimated membership in the school year ending in the

 

current state fiscal year, excluding intermediate district

 

membership, by the estimated membership for the school year ending

in the subsequent state fiscal year, excluding intermediate

 

district membership. If a consensus membership factor is not

 

determined at the revenue estimating conference, the principals of

 

the revenue estimating conference shall report their estimates to

 

the house and senate subcommittees responsible for school aid

 

appropriations not later than 7 days after the conclusion of the

 

revenue conference.

 

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

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

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

 

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

     (12) Payments to districts and public school academies shall

 

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

 

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

 

state payments under section 22b.

 

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

 

constitution of 1963 allowing state aid to some or all nonpublic

 

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

 

allowance or per-pupil payment calculation under this section may

 

be reduced.

 

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

 

code, MCL 380.1211, the basic foundation allowance under this

 

section is considered to be the target foundation allowance under

 

this section.

 

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

 

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

 

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

 

1993-94.

 

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

 

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

 

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

 

operating revenue.

 

     (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 target foundation allowance for

 

the current state fiscal year and the basic target foundation

 

allowance for the immediately preceding state fiscal year and [(the

 

amount of the difference between the basic target foundation

 

allowance for the current state fiscal year and the basic target

 

foundation allowance for the immediately preceding state fiscal

 

year minus $40.00) times (the difference between the highest per-

 

pupil allocation among all public school academies for the

 

immediately preceding state fiscal year and the minimum foundation

 

allowance for the immediately preceding state fiscal year) divided

 

by the difference between the basic target foundation allowance for

 

the current state fiscal year and the minimum foundation allowance

 

for the immediately preceding state fiscal year.] For the purposes

 

of this subdivision, for 2018-2019, 2019-2020, the maximum public

 

school academy allocation is $7,871.00.$8,141.00.

 

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

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

 

particular calculation is made.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

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

 

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

 

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

 

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

 

code, MCL 380.1211.

 

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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

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

 

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

 

380.1211, and retained for school operating purposes.

 

     (q) "Target foundation allowance for the immediately preceding

 

fiscal year" means, for 2019-2020 only, the basic foundation

 

allowance in effect for the 2018-2019 fiscal year.

 

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

 

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

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

 

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

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670,

 

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

 

125.2871 to 125.2899.

 

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

 

value, as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special

 

education pupils for the school year ending in the current state

 

fiscal year.

 

     Sec. 20d. In making the final determination required under

 

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

 

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

 

section 20 for 2018-2019, 2019-2020, the department and the

 

department of treasury shall comply with all of the following:

 

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

 

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

 

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

 

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

 

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

 

pursuant to under this act in 1993-94 shall exclude excludes

 

payments made under former section 146 and under section 147 on

 

behalf of the district's employees who provided direct services to

 

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

 

the department shall make an adjustment under this subdivision to

 

the district's combined state and local revenue per membership

pupil in the 1994-95 state fiscal year and the department of

 

treasury shall make a final certification of the number of mills

 

that may be levied by the district under section 1211 of the

 

revised school code, MCL 380.1211, as a result of the adjustment

 

under this subdivision.

 

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

 

state school aid that excluded payments made under former section

 

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

 

provided direct services for intermediate district center programs

 

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

 

pupils attending the center programs were included in the

 

district's membership for purposes of calculating the combined

 

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

 

there is a signed agreement by all constituent districts of the

 

intermediate district that agreeing to an adjustment under this

 

subdivision, shall be made, the department shall calculate the

 

foundation allowances for 1995-96 and 1996-97 of all districts that

 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 

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

 

is allocated an amount not to exceed $18,000,000.00 for 2018-2019

 

2019-2020 for payments to eligible districts under this section.

 

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

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

 

subsection if the district received a payment under this section as

 

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

 

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

 

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

 

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

 

2013-2014.

 

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

 

former section 22c for 2013-2014.

 

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

 

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

 

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

 

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

 

pupils for 2013-2014.

 

     (3) The amount allocated to each eligible district under

 

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

 

amount per membership pupil the district received under this

 

section in 2013-2014.

 

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

 

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

 

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

 

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

 

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

 

2015-2016.

 

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

 

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

 

     (c) The decrease in the district's pupil performance per-pupil

funding under former section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (5) The amount allocated to each eligible district under

 

subsection (4) is an amount per membership pupil equal to $25.00

 

minus the sum of the following:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments under subsections (3) and (5) as otherwise

 

calculated under this section, the department shall prorate

 

payments under this section on an equal per-pupil basis.

 

     Sec. 21h. (1) From the appropriation in section 11, there is

 

allocated $7,000,000.00 for 2018-2019 2019-2020 for assisting

districts assigned by the superintendent to participate in a

 

partnership to improve student achievement. The purpose of the

 

partnership is to identify district needs, develop intervention

 

plans, and partner with public, private, and nonprofit

 

organizations to coordinate resources and improve student

 

achievement. Assignment of a district to a partnership is at the

 

sole discretion of the superintendent.

 

     (2) A district assigned to a partnership by the superintendent

 

is eligible for funding under this section if the district includes

 

at least 1 school that has been rated with a grade of "F", or

 

comparable performance rating, in the most recent state

 

accountability system rating , that is not under the supervision of

 

the state school reform/redesign office, and that does all of the

 

following:

 

     (a) Completes a comprehensive needs evaluation in

 

collaboration with an intermediate school district, community

 

members, education organizations, and postsecondary institutions,

 

as applicable and approved by the superintendent, within 90 days of

 

assignment to the partnership described in this section. The

 

comprehensive needs evaluation shall must include at least all of

 

the following:

 

     (i) A review of the district's implementation and utilization

 

of a multi-tiered system of supports to ensure that it is used to

 

appropriately inform instruction.

 

     (ii) A review of the district and school building leadership

 

and educator capacity to substantially improve student outcomes.

 

     (iii) A review of classroom, instructional, and operational