SB-0926, As Passed House, December 10, 2009

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 926

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, and 94a (MCL 388.1606, 388.1611, and

388.1694a), as amended by 2009 PA 121, and by adding section 166c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

district or intermediate district for special education pupils from

several districts in programs for pupils with autism spectrum

disorder, pupils with severe cognitive impairment, pupils with

moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

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

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

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

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

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

report of the number of pupils, excluding adult 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 act,

means for a district, public school academy, university school, or

intermediate district the sum of the product of .75 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 .25

times the final audited count from the supplemental count day 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, public school

academy, university school, or intermediate district:

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

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

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

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

membership.

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

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

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

of residence does not give the educating district its approval to

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

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

the requirement that the educating district must have the approval

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

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

district.

district shall be counted in membership in the intermediate

district.

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

program of a juvenile detention facility, a child caring

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

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

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a vocational education program

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

district or in an area vocational-technical education program

established pursuant to section 690 of the revised school code, MCL

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

residence.

(g) A pupil enrolled in a university school shall be counted

in membership in the university school.

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

counted in membership in the public school academy.

(i) For a new district, university school, or public school

academy beginning its operation after December 31, 1994, membership

for the first 2 full or partial fiscal years of operation shall be

determined as follows:

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

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

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

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

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

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

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

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

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

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

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

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

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

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

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

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, public school academy, university school,

or intermediate district operating an extended school year program

approved by the superintendent, a pupil enrolled, but not scheduled

to be in regular daily attendance on a pupil membership count day,

shall be counted.

(l) Pupils to be counted in membership shall be not less than 5

years of age on December 1 and less than 20 years of age on

September 1 of the school year except a special education pupil who

is enrolled and receiving instruction in a special education

program or service approved by the department and not having a high

school diploma who is less than 26 years of age as of September 1

of the current school year shall be counted in membership.

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

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

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

counted in membership. An individual participating in a job

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

funded under former section 107b, administered by the Michigan

strategic fund or the department of energy, labor, and economic

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

programs, shall not be counted in membership.

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

academy is also educated by a district or intermediate district as

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

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q). 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 specified in subdivision (q), the

public school academy shall receive as its prorated share of the

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

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

school academy provides divided by the number of hours specified in

subdivision (q) for full-time equivalency, and the remainder of the

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

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for less

than 1/2 of the class hours specified in subdivision (q), the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

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

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

district or intermediate district provides divided by the number of

hours specified in subdivision (q) for full-time equivalency, and

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

shall be allocated to the public school academy.

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

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

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

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

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

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

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Except as otherwise provided in this subdivision, full-

time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by a number equal to 1/2

the number used for determining full-time equated memberships for

pupils in grades 1 to 12.

(s) For a district, university school, or public school

academy that has pupils enrolled in a grade level that was not

offered by the district, university school, or public school

academy in the immediately preceding school year, the number of

pupils enrolled in that grade level to be counted in membership is

the average of the number of those pupils enrolled and in regular

daily attendance on the pupil membership count day and the

supplemental count day of the current school year, as determined by

the department. Membership shall be calculated by adding the number

of pupils registered for attendance in that grade level on the

pupil membership count day plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by subsequent department audit,

plus the final audited count from the supplemental count day for

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

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

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

written approval of all parties to the cooperative agreement.

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

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

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

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

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

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

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

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

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

be providing appropriate instruction if all of the following are

met:

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

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

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies, except computers, 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) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district or public school academy that is

educating the pupil.

(w) 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.

(x) 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 .75 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 .25 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.

(y) 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, beginning in 2007-2008,

if the district does not receive funding under section 22d(2), the

district's membership shall be considered to be the membership

figure calculated under this subdivision. If a district educates

and counts in its membership pupils in grades 9 to 12 who reside in

a contiguous district that does not operate grades 9 to 12 and if 1

or both of the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

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

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

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

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

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

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

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

otherwise calculated under this subsection.

(z) 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 in which a former pupil

of the public school academy enrolls and is in regular daily

attendance for the next school year to ensure that the district

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

pupil were counted in the district on the supplemental count day of

the preceding school year.

(aa) Full-time equated memberships for preprimary-aged special

education pupils who are not enrolled in kindergarten but are

enrolled in a classroom program under R 340.1754 of the Michigan

administrative code shall be determined by dividing the number of

class hours scheduled and provided per year by 450. Full-time

equated memberships for preprimary-aged special education pupils

who are not enrolled in kindergarten but are receiving nonclassroom

services under R 340.1755 of the Michigan administrative code shall

be determined by dividing the number of hours of service scheduled

and provided per year per pupil by 180.

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

Labor day who is enrolled in an intermediate district program that

begins before Labor day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor day.

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

membership on the pupil membership count day in a middle college

program described in section 64, 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 was counted by the

operating district on the immediately preceding supplemental count

day, the pupil shall be excluded from the district's immediately

preceding supplemental count for purposes of determining the

district's membership.

(dd) A district 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.

(5) "Public school academy" means a public school academy,

urban high school academy, school of excellence, or strict

discipline academy operating under the revised school code.

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

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

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

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

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

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

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

school.

(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 750.90g, 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.

(v) The pupil is enrolled in an alternative or disciplinary

education program described in section 25.

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

the pupil's enrollment in the Michigan virtual high school.

(j) A pupil who is the child of a person who is employed by

the district. 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 program described in section 64 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.

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

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

district means:

(a) Except as provided in subdivision (b), the fourth

Wednesday after Labor day 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) Fourth Wednesday after Labor day.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

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

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

receiving instruction in all classes for which they are enrolled on

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

applicable. Except as otherwise provided in this subsection, a

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

enrolled on the pupil membership count day or supplemental count

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

consecutive school days immediately following the pupil membership

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

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

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

pupil membership count day or supplemental count day and who fails

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

30 calendar days after the pupil membership count day or

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

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

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

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

membership count day or supplemental count day shall only be

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

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

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

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

attended. For purposes of this subsection, "class" means a period

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

qualified substitute teacher are together and instruction is taking

place.

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

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

24.328.

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

380.1852.

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

district", and "district of the first class", except in subsection

(6), mean a district that had at least 60,000 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) "School of excellence" means a school of excellence

established under part 6e of the revised school code.

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

(15) ~~(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.

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

supplemental pupil count is conducted under section 6a.

(17) ~~(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. Tuition pupil does not

include a pupil who is a special education pupil or a pupil

described in subsection (6)(c) to (m). 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.

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

fund established in section 11 of article IX of the state

constitution of 1963.

(19) ~~(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.

(20) ~~(19)~~ "Textbook" means a book 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.

(21) ~~(20)~~ "Total state aid" or "total state school aid" means

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

intermediate district, or other entity under all of the provisions

of this act.

(22) ~~(21)~~ "University school" means an instructional program

operated by a public university under section 23 that meets the

requirements of section 23.

Sec. 11. (1) For the fiscal year ending September 30, 2010,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

$10,793,954,100.00 from the state school aid fund established by

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

sum of $31,800,000.00 from the general fund. For the fiscal year

ending September 30, 2010, there is also appropriated the sum of

$450,000,000.00 from the federal funding awarded to this state

under title XIV of the American recovery and reinvestment act of

2009, Public Law 111-5, to be used solely for the purpose of

funding the primary funding formula calculated under section 20, in

accordance with federal law. In addition, any money received by

this state from the federal incentive grant program created under

sections 14005 and 14006 of title XIV of the American recovery and

reinvestment act of 2009, Public Law 111-5, known as the "race to

the top" grant program, and all other available federal funds are

appropriated for the fiscal year ending September 30,2010.

(2) The appropriations under this section shall be allocated

as provided in this act. Money appropriated under this section from

the general fund shall be expended to fund the purposes of this act

before the expenditure of money appropriated under this section

from the state school aid fund. If the maximum amount appropriated

under this section from the state school aid fund for a fiscal year

exceeds the amount necessary to fully fund allocations under this

act from the state school aid fund, that excess amount shall not be

expended in that state fiscal year and shall not lapse to the

general fund, but instead shall be deposited into the school aid

stabilization fund created in section 11a.

(3) If the maximum amount appropriated under this section from

the state school aid fund and the school aid stabilization fund for

a fiscal year exceeds the amount available for expenditure from the

state school aid fund for that fiscal year, payments under sections

11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,

and 56 shall be made in full. In addition, for districts beginning

operations after 1994-95 that qualify for payments under section

22b, payments under section 22b shall be made so that the

qualifying districts receive the lesser of an amount equal to the

1994-95 foundation allowance of the district in which the district

beginning operations after 1994-95 is located or $5,500.00. The

amount of the payment to be made under section 22b for these

qualifying districts shall be as calculated under section 22a, with

the balance of the payment under section 22b being subject to the

proration otherwise provided under this subsection and subsection

(4). If proration is necessary, state payments under each of the

other sections of this act from all state funding sources shall be

prorated in the manner prescribed in subsection (4) as necessary to

reflect the amount available for expenditure from the state school

aid fund for the affected fiscal year. However, if the department

of treasury determines that proration will be required under this

subsection, or if the department of treasury determines that

further proration is required under this subsection after an

initial proration has already been made for a fiscal year, the

department of treasury shall notify the state budget director, and

the state budget director shall notify the legislature at least 30

calendar days or 6 legislative session days, whichever is more,

before the department reduces any payments under this act because

of the proration. During the 30 calendar day or 6 legislative

session day period after that notification by the state budget

director, the department shall not reduce any payments under this

act because of proration under this subsection. The legislature may

prevent proration from occurring by, within the 30 calendar day or

6 legislative session day period after that notification by the

state budget director, enacting legislation appropriating

additional funds from the general fund, countercyclical budget and

economic stabilization fund, state school aid fund balance, or

another source to fund the amount of the projected shortfall.

(4) If proration is necessary under subsection (3), the

department shall calculate the proration in district and

intermediate district payments that is required under subsection

(3) as follows:

(a) The department shall calculate the percentage of total

state school aid allocated under this act for the affected fiscal

year for each of the following:

(i) Districts.

(ii) Intermediate districts.

(iii) Entities other than districts or intermediate districts.

(b) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(i) for districts by

reducing payments to districts. This reduction shall be made by

calculating an equal dollar amount per pupil as necessary to

recover this percentage of the proration amount and reducing each

district's total state school aid from state sources, other than

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

51a(2), 51a(12), 51c, and 53a, by that amount.

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(ii) for intermediate

districts by reducing payments to intermediate districts. This

reduction shall be made by reducing the payments to each

intermediate district, other than payments under sections 11f, 11g,

26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage

basis.

(d) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(iii) for entities other

than districts and intermediate districts by reducing payments to

these entities. This reduction shall be made by reducing the

payments to each of these entities, other than payments under

sections 11j, 26a, and 26b, on an equal percentage basis.

(5) Except for the allocation under section 26a, any general

fund allocations under this act 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. 94a. (1) There is created within the office of the state

budget director in the department of management and budget the

center for educational performance and information. The center

shall do all of the following:

(a) Coordinate the collection of all data required by state

and federal law from all entities receiving funds under this act.

(b) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities.

reliability of the data and the collection process.

(d) Develop state and model local data collection policies,

including, but not limited to, policies that ensure the privacy of

individual student data. State privacy policies shall ensure that

student social security numbers are not released to the public for

any purpose.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide reports to the citizens of this state to allow

them to assess allocation of resources and the return on their

investment in the education system of this state.

(g) Assist all entities receiving funds under this act in

complying with audits performed according to generally accepted

accounting procedures.

(h) To the extent funding is available, coordinate the

electronic exchange of student records using a unique

identification numbering system among entities receiving funds

under this act and postsecondary institutions for students

participating in public education programs from preschool through

postsecondary education.

(i) In cooperation with the department, create and implement a

teacher identifier system with the ability to match an individual

teacher to individual pupils the teacher has taught. Subject to

applicable law regarding student privacy, the system shall do all

of the following:

(i) Make accessible annual state assessment records of

individual pupils.

(ii) Enable individual pupil academic achievement data,

including growth in academic achievement, to be correlated to each

teacher who has taught the pupil.

(iii) Enable school board members, teachers, and school

administrators to have access to the data so they can make informed

decisions in order to improve instruction and pupil achievement.

(iv) Allow access to individual pupil demographic data

including attendance rates, transience rates, any available data on

disciplinary action taken with respect to an individual pupil, and

any at-risk factors, as identified in section 31a, that apply to

the pupil, in order to give administrators a comprehensive profile

of the pupil and the challenges that the pupil faces in learning

and the teacher faces in instruction.

(j) ~~(i)~~ Other functions as assigned by the state budget

director.

(2) Each state department, officer, or agency that collects

information from districts or intermediate districts as required

under state or federal law shall make arrangements with the center,

and with the districts or intermediate districts, to have the

center collect the information and to provide it to the department,

officer, or agency as necessary. To the extent that it does not

cause financial hardship, the center shall arrange to collect the

information in a manner that allows electronic submission of the

information to the center. Each affected state department, officer,

or agency shall provide the center with any details necessary for

the center to collect information as provided under this

subsection. This subsection does not apply to information collected

by the department of treasury under the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the

school bond qualification, approval, and loan act, 2005 PA 92, MCL

388.1921 to 388.1939; or section 1351a of the revised school code,

MCL 380.1351a.

(3) The state budget director shall appoint a CEPI advisory

committee, consisting of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

director.

(d) One representative from the state education agency.

(e) One representative each from the department of energy,

labor, and economic growth and the department of treasury.

(f) Three representatives from intermediate school districts.

(g) One representative from each of the following educational

organizations:

(i) Michigan association of school boards.

(ii) Michigan association of school administrators.

(iii) Michigan school business officials.

(h) One representative representing private sector firms

responsible for auditing school records.

(i) Other representatives as the state budget director

determines are necessary.

(4) The CEPI advisory committee appointed under subsection (3)

shall provide advice to the director of the center regarding the

management of the center's data collection activities, including,

but not limited to:

(a) Determining what data is necessary to collect and maintain

in order to perform the center's functions in the most efficient

manner possible.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

reasonable accuracy of the data.

(f) Establishing and maintaining state and model local

policies related to data collection, including, but not limited to,

privacy policies related to individual student data.

(g) Ensuring the data is made available to state and local

policymakers and citizens of this state in the most useful format

possible.

(h) Other matters as determined by the state budget director

or the director of the center.

(5) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(6) From the general fund appropriation in section 11, there

is allocated an amount not to exceed $3,486,100.00 for 2009-2010 to

the department of management and budget to support the operations

of the center and the development and implementation of a

comprehensive longitudinal data collection management and reporting

system that includes student-level data. The center shall cooperate

with the state education agency to ensure that this state is in

compliance with federal law and is maximizing opportunities for

increased federal funding to improve education in this state. To

the extent that funding under this section allows, the center shall

collect data necessary to maximize federal funding under the

American recovery and reinvestment act of 2009, Public Law 111-5,

and other federal statutes, including data necessary to implement a

P-20 longitudinal data system. In addition, from the federal funds

appropriated in section 11 for 2009-2010, there is allocated the

amount necessary, estimated at $2,793,200.00, in order to fulfill

federal reporting requirements.

(7) From the federal funds allocated in subsection (6), there

is allocated for 2009-2010 an amount not to exceed $750,000.00

funded from the competitive grants of DED-OESE, title II,

educational technology funds for the purposes of this subsection.

Not later than November 30, 2008, the department shall award a

single grant to an eligible partnership that includes an

intermediate district with at least 1 high-need local school

district and the center.

(8) The center and the department shall work cooperatively to

develop a cost allocation plan that pays for center expenses from

the appropriate federal fund revenues.

(9) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year.

(10) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (6) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(11) As used in this section:

(a) "DED-OESE" means the United States department of education

office of elementary and secondary education.

(b) "High-need local school district" means a local

educational agency as defined in the enhancing education through

technology part of the no child left behind act of 2001, Public Law

107-110.

Sec. 166c. (1) The board of a district or intermediate

district shall ensure that all teachers and principals working in

its schools and instructional programs have adequate access to

basic instructional supplies. For the purposes of this section, the

department shall develop and publish on its website a definition of

what constitutes basic instructional supplies.

(2) If a teacher or principal does not have adequate access to

basic instructional supplies, as required under subsection (1), he

or she may file a claim with the department asserting the failure

of the district or intermediate district to provide adequate access

to basic instructional supplies. To facilitate the filing of

claims, the department shall establish and publicize on its website

both a telephone line and an online system for filing a claim.

(3) Subject to subsection (4), if the department receives a

claim under this subsection, the department shall contact the

district or intermediate district in which the teacher or principal

is employed to provide notification of the claim. Within 3 business

days after receiving this notification, the district or

intermediate district shall either provide to the teacher or

principal adequate access to basic instructional supplies or

provide to the teacher or principal and the department a written

plan for appropriate corrective action. If the department is not

satisfied with the response of the district or intermediate

district, the department may investigate further and may procure

and make available to a teacher or principal who has filed a claim

under this section an interim amount of basic instructional

supplies for use in a classroom in which there is a shortage.

(4) If the department does not have sufficient resources to

address all claims under this section, the department may

prioritize claims based on need.

(5) If this state receives funds from the federal incentive

grant program created under sections 14005 and 14006 of title XIV

of the American recovery and reinvestment act of 2009, Public Law

111-5, known as the "race to the top" grant program, and money from

those funds is appropriated to the department for this purpose, the

department shall establish a revolving fund to be used to procure

and make available an interim amount of basic instructional

supplies for use by teachers or principals who have filed claims

Senate Bill No. 926 (H-2) as amended December 10, 2009

under this section and whose claims have not been adequately

addressed. If the department uses money from this fund for a

teacher or principal in a district or intermediate district, the

department shall order the district or intermediate district to

repay the fund not later than the next fiscal year after the

expenditure. If a district or intermediate district does not repay

the department according to the order, the department may withhold

the amount owed from the district's or intermediate district's

total state school aid due under this act and shall deposit the

amount withheld into the fund.

(6) The board of a district or intermediate district shall

ensure that a teacher or principal who files a claim with the

department under this section is not subject to any adverse

treatment for filing the claim.

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