DRAFT BILL No. ____ DRAFT BILL No. ____ DRAFT 1 07/16/2015 CONFIDENTIAL ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION (State School Aid for Education District-NewCo) ______'15 ____ DRAFT BILL No. _____ ________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on __________________________________. A bill to amend 1979 PA 94, entitled "The State School Aid Act of 1979," by amending sections 6, 20, and 31a (MCL 388.1606, 388.1620, and 388.1631a), sections 6 and 20 as amended by 2014 PA 196, section 31a as amended by 2014 PA 476, and by adding section 82. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. 6. (1) "Center program" means a program operated by a 1 district or by an intermediate district for special education 2 pupils from several districts in programs for pupils with autism 3 spectrum disorder, pupils with severe cognitive impairment, pupils 4 with moderate cognitive impairment, pupils with severe multiple 5 impairments, pupils with hearing impairment, pupils with visual 6 impairment, and pupils with physical impairment or other health 7 impairment. Programs for pupils with emotional impairment housed in 8
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DRAFT 1 07/16/2015CONFIDENTIAL
ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION(State School Aid for Education District-NewCo)
______'15 ____
DRAFT BILL No. _____
________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on__________________________________.
A bill to amend 1979 PA 94, entitled
"The State School Aid Act of 1979,"
by amending sections 6, 20, and 31a (MCL 388.1606, 388.1620, and
388.1631a), sections 6 and 20 as amended by 2014 PA 196, section
31a as amended by 2014 PA 476, and by adding section 82.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) "Center program" means a program operated by a1
district or by an intermediate district for special education2
pupils from several districts in programs for pupils with autism3
spectrum disorder, pupils with severe cognitive impairment, pupils4
with moderate cognitive impairment, pupils with severe multiple5
impairments, pupils with hearing impairment, pupils with visual6
impairment, and pupils with physical impairment or other health7
impairment. Programs for pupils with emotional impairment housed in8
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buildings that do not serve regular education pupils also qualify.1
Unless otherwise approved by the department, a center program2
either shall serve all constituent districts within an intermediate3
district or shall serve several districts with less than 50% of the4
pupils residing in the operating district. In addition, special5
education center program pupils placed part-time in noncenter6
programs to comply with the least restrictive environment7
provisions of section 612 of part B of the individuals with8
disabilities education act, 20 USC 1412, may be considered center9
program pupils for pupil accounting purposes for the time scheduled10
in either a center program or a noncenter program.11
(2) "District and high school graduation rate" means the12
annual completion and pupil dropout rate that is calculated by the13
center pursuant to nationally recognized standards.14
(3) "District and high school graduation report" means a15
report of the number of pupils, excluding adult participants, in16
the district for the immediately preceding school year, adjusted17
for those pupils who have transferred into or out of the district18
or high school, who leave high school with a diploma or other19
credential of equal status.20
(4) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT ORGANIZED21
UNDER PART 2A OF THE REVISED SCHOOL CODE, MCL 380.101 TO 110.22
(5)(4) "Membership", except as otherwise provided in this23
article, means for a district, a public school academy, the24
education achievement system, or an intermediate district the sum25
of the product of .90 times the number of full-time equated pupils26
in grades K to 12 actually enrolled and in regular daily attendance27
on the pupil membership count day for the current school year, plus28
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the product of .10 times the final audited count from the1
supplemental count day for the current school year. A district's,2
public school academy's, or intermediate district's membership3
shall be adjusted as provided under section 25e for pupils who4
enroll in the district, public school academy, or intermediate5
district after the pupil membership count day. All pupil counts6
used in this subsection are as determined by the department and7
calculated by adding the number of pupils registered for attendance8
plus pupils received by transfer and minus pupils lost as defined9
by rules promulgated by the superintendent, and as corrected by a10
subsequent department audit. For the purposes of this section and11
section 6a, for a school of excellence that is a cyber school, as12
defined in section 551 of the revised school code, MCL 380.551, and13
is in compliance with section 553a of the revised school code, MCL14
380.553a, a pupil's participation in the cyber school's educational15
program is considered regular daily attendance; for the education16
achievement system, a pupil's participation in an online17
educational program of the education achievement system or of an18
achievement school is considered regular daily attendance; and for19
a district a pupil's participation in an online course as defined20
in section 21f is considered regular daily attendance. The amount21
of the foundation allowance for a pupil in membership is determined22
under section 20. In making the calculation of membership, all of23
the following, as applicable, apply to determining the membership24
of a district, a public school academy, the education achievement25
system, or an intermediate district:26
(a) Except as otherwise provided in this subsection, and27
pursuant to subsection (6), a pupil shall be counted in membership28
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in the pupil's educating district or districts. An individual pupil1
shall not be counted for more than a total of 1.0 full-time equated2
membership.3
(b) If a pupil is educated in a district other than the4
pupil's district of residence, if the pupil is not being educated5
as part of a cooperative education program, if the pupil's district6
of residence does not give the educating district its approval to7
count the pupil in membership in the educating district, and if the8
pupil is not covered by an exception specified in subsection (6) to9
the requirement that the educating district must have the approval10
of the pupil's district of residence to count the pupil in11
membership, the pupil shall not be counted in membership in any12
district.13
(c) A special education pupil educated by the intermediate14
district shall be counted in membership in the intermediate15
district.16
(d) A pupil placed by a court or state agency in an on-grounds17
program of a juvenile detention facility, a child caring18
institution, or a mental health institution, or a pupil funded19
under section 53a, shall be counted in membership in the district20
or intermediate district approved by the department to operate the21
program.22
(e) A pupil enrolled in the Michigan schools for the deaf and23
blind shall be counted in membership in the pupil's intermediate24
district of residence.25
(f) A pupil enrolled in a career and technical education26
program supported by a millage levied over an area larger than a27
single district or in an area vocational-technical education28
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program established pursuant to section 690 of the revised school1
code, MCL 380.690, shall be counted only in the pupil's district of2
residence.3
(g) A pupil enrolled in a public school academy shall be4
counted in membership in the public school academy.5
(h) A pupil enrolled in an achievement school shall be counted6
in membership in the education achievement system.7
(I) A PUPIL ENROLLED IN AN EDUCATION DISTRICT SHALL BE COUNTED8
IN MEMBERSHIP IN THE EDUCATION DISTRICT.9
(J)(i) For a new district or public school academy beginning10
its operation after December 31, 1994, or for the education11
achievement system or an achievement school, membership for the12
first 2 full or partial fiscal years of operation shall be13
determined as follows:14
(i) If operations begin before the pupil membership count day15
for the fiscal year, membership is the average number of full-time16
equated pupils in grades K to 12 actually enrolled and in regular17
daily attendance on the pupil membership count day for the current18
school year and on the supplemental count day for the current19
school year, as determined by the department and calculated by20
adding the number of pupils registered for attendance on the pupil21
membership count day plus pupils received by transfer and minus22
pupils lost as defined by rules promulgated by the superintendent,23
and as corrected by a subsequent department audit, plus the final24
audited count from the supplemental count day for the current25
school year, and dividing that sum by 2.26
(ii) If operations begin after the pupil membership count day27
for the fiscal year and not later than the supplemental count day28
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for the fiscal year, membership is the final audited count of the1
number of full-time equated pupils in grades K to 12 actually2
enrolled and in regular daily attendance on the supplemental count3
day for the current school year.4
(K)(j) If a district is the authorizing body for a public5
school academy, then, in the first school year in which pupils are6
counted in membership on the pupil membership count day in the7
public school academy, the determination of the district's8
membership shall exclude from the district's pupil count for the9
immediately preceding supplemental count day any pupils who are10
counted in the public school academy on that first pupil membership11
count day who were also counted in the district on the immediately12
preceding supplemental count day.13
(L)(k) In a district, a public school academy, the education14
achievement system, or an intermediate district operating an15
extended school year program approved by the superintendent, a16
pupil enrolled, but not scheduled to be in regular daily attendance17
on a pupil membership count day, shall be counted.18
(M)(l) To be counted in membership, a pupil shall meet the19
minimum age requirement to be eligible to attend school under20
section 1147 of the revised school code, MCL 380.1147, or shall be21
enrolled under subsection (3) of that section, and shall be less22
than 20 years of age on September 1 of the school year except as23
follows:24
(i) A special education pupil who is enrolled and receiving25
instruction in a special education program or service approved by26
the department, who does not have a high school diploma, and who is27
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less than 26 years of age as of September 1 of the current school1
year shall be counted in membership.2
(ii) A pupil who is determined by the department to meet all of3
the following may be counted in membership:4
(A) Is enrolled in a public school academy or an alternative5
education high school diploma program, that is primarily focused on6
educating homeless pupils.7
(B) Had dropped out of school for more than 1 year and has re-8
entered school.9
(C) Is less than 22 years of age as of September 1 of the10
current school year.11
(iii) If a child does not meet the minimum age requirement to be12
eligible to attend school for that school year under section 114713
of the revised school code, MCL 380.1147, but will be 5 years of14
age not later than December 1 of that school year, the district may15
count the child in membership for that school year if the parent or16
legal guardian has notified the district in writing that he or she17
intends to enroll the child in kindergarten for that school year.18
(N)(m) An individual who has obtained a high school diploma19
shall not be counted in membership. An individual who has obtained20
a general educational development (G.E.D.) certificate shall not be21
counted in membership unless the individual is a pupil with a22
disability as defined in R 340.1702 of the Michigan administrative23
code. An individual participating in a job training program funded24
under former section 107a or a jobs program funded under former25
section 107b, administered by the Michigan strategic fund, or26
participating in any successor of either of those 2 programs, shall27
not be counted in membership.28
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(O)(n) If a pupil counted in membership in a public school1
academy or the education achievement system is also educated by a2
district or intermediate district as part of a cooperative3
education program, the pupil shall be counted in membership only in4
the public school academy or the education achievement system5
unless a written agreement signed by all parties designates the6
party or parties in which the pupil shall be counted in membership,7
and the instructional time scheduled for the pupil in the district8
or intermediate district shall be included in the full-time equated9
membership determination under subdivision (R)(q). However, for10
pupils receiving instruction in both a public school academy or the11
education achievement system and in a district or intermediate12
district but not as a part of a cooperative education program, the13
following apply:14
(i) If the public school academy or the education achievement15
system provides instruction for at least 1/2 of the class hours16
specified in subdivision (R)(q), the public school academy or the17
education achievement system shall receive as its prorated share of18
the full-time equated membership for each of those pupils an amount19
equal to 1 times the product of the hours of instruction the public20
school academy or the education achievement system provides divided21
by the number of hours specified in subdivision (R)(q) for full-22
time equivalency, and the remainder of the full-time membership for23
each of those pupils shall be allocated to the district or24
intermediate district providing the remainder of the hours of25
instruction.26
(ii) If the public school academy or the education achievement27
system provides instruction for less than 1/2 of the class hours28
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specified in subdivision (R)(q), the district or intermediate1
district providing the remainder of the hours of instruction shall2
receive as its prorated share of the full-time equated membership3
for each of those pupils an amount equal to 1 times the product of4
the hours of instruction the district or intermediate district5
provides divided by the number of hours specified in subdivision6
(R)(q) for full-time equivalency, and the remainder of the full-7
time membership for each of those pupils shall be allocated to the8
public school academy or the education achievement system.9
(P)(o) An individual less than 16 years of age as of September10
1 of the current school year who is being educated in an11
alternative education program shall not be counted in membership if12
there are also adult education participants being educated in the13
same program or classroom.14
(Q)(p) The department shall give a uniform interpretation of15
full-time and part-time memberships.16
(R)(q) The number of class hours used to calculate full-time17
equated memberships shall be consistent with section 101(3). In18
determining full-time equated memberships for pupils who are19
enrolled in a postsecondary institution, a pupil shall not be20
considered to be less than a full-time equated pupil solely because21
of the effect of his or her postsecondary enrollment, including22
necessary travel time, on the number of class hours provided by the23
district to the pupil.24
(S)(r) Beginning in 2012-2013, full-time equated memberships25
for pupils in kindergarten shall be determined by dividing the26
number of instructional hours scheduled and provided per year per27
kindergarten pupil by the same number used for determining full-28
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time equated memberships for pupils in grades 1 to 12. However, to1
the extent allowable under federal law, for a district or public2
school academy that provides evidence satisfactory to the3
department that it used federal title I money in the 2 immediately4
preceding school fiscal years to fund full-time kindergarten, full-5
time equated memberships for pupils in kindergarten shall be6
determined by dividing the number of class hours scheduled and7
provided per year per kindergarten pupil by a number equal to 1/28
the number used for determining full-time equated memberships for9
pupils in grades 1 to 12. The change in the counting of full-time10
equated memberships for pupils in kindergarten that took effect for11
2012-2013 is not a mandate.12
(T)(s) For a district, a public school academy, or the13
education achievement system that has pupils enrolled in a grade14
level that was not offered by the district, the public school15
academy, or the education achievement system in the immediately16
preceding school year, the number of pupils enrolled in that grade17
level to be counted in membership is the average of the number of18
those pupils enrolled and in regular daily attendance on the pupil19
membership count day and the supplemental count day of the current20
school year, as determined by the department. Membership shall be21
calculated by adding the number of pupils registered for attendance22
in that grade level on the pupil membership count day plus pupils23
received by transfer and minus pupils lost as defined by rules24
promulgated by the superintendent, and as corrected by subsequent25
department audit, plus the final audited count from the26
supplemental count day for the current school year, and dividing27
that sum by 2.28
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(U)(t) A pupil enrolled in a cooperative education program may1
be counted in membership in the pupil's district of residence with2
the written approval of all parties to the cooperative agreement.3
(V)(u) If, as a result of a disciplinary action, a district4
determines through the district's alternative or disciplinary5
education program that the best instructional placement for a pupil6
is in the pupil's home or otherwise apart from the general school7
population, if that placement is authorized in writing by the8
district superintendent and district alternative or disciplinary9
education supervisor, and if the district provides appropriate10
instruction as described in this subdivision to the pupil at the11
pupil's home or otherwise apart from the general school population,12
the district may count the pupil in membership on a pro rata basis,13
with the proration based on the number of hours of instruction the14
district actually provides to the pupil divided by the number of15
hours specified in subdivision (R)(q) for full-time equivalency.16
For the purposes of this subdivision, a district shall be17
considered to be providing appropriate instruction if all of the18
following are met:19
(i) The district provides at least 2 nonconsecutive hours of20
instruction per week to the pupil at the pupil's home or otherwise21
apart from the general school population under the supervision of a22
certificated teacher.23
(ii) The district provides instructional materials, resources,24
and supplies that are comparable to those otherwise provided in the25
district's alternative education program.26
(iii) Course content is comparable to that in the district's27
alternative education program.28
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(iv) Credit earned is awarded to the pupil and placed on the1
pupil's transcript.2
(W)(v) If a pupil was enrolled in a public school academy on3
the pupil membership count day, if the public school academy's4
contract with its authorizing body is revoked or the public school5
academy otherwise ceases to operate, and if the pupil enrolls in a6
district or the education achievement system within 45 days after7
the pupil membership count day, the department shall adjust the8
district's or the education achievement system's pupil count for9
the pupil membership count day to include the pupil in the count.10
(X)(w) For a public school academy that has been in operation11
for at least 2 years and that suspended operations for at least 112
semester and is resuming operations, membership is the sum of the13
product of .90 times the number of full-time equated pupils in14
grades K to 12 actually enrolled and in regular daily attendance on15
the first pupil membership count day or supplemental count day,16
whichever is first, occurring after operations resume, plus the17
product of .10 times the final audited count from the most recent18
pupil membership count day or supplemental count day that occurred19
before suspending operations, as determined by the superintendent.20
(Y)(x) If a district's membership for a particular fiscal21
year, as otherwise calculated under this subsection, would be less22
than 1,550 pupils and the district has 4.5 or fewer pupils per23
square mile, as determined by the department, and if the district24
does not receive funding under section 22d(2), the district's25
membership shall be considered to be the membership figure26
calculated under this subdivision. If a district educates and27
counts in its membership pupils in grades 9 to 12 who reside in a28
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contiguous district that does not operate grades 9 to 12 and if 11
or both of the affected districts request the department to use the2
determination allowed under this sentence, the department shall3
include the square mileage of both districts in determining the4
number of pupils per square mile for each of the districts for the5
purposes of this subdivision. The membership figure calculated6
under this subdivision is the greater of the following:7
(i) The average of the district's membership for the 3-fiscal-8
year period ending with that fiscal year, calculated by adding the9
district's actual membership for each of those 3 fiscal years, as10
otherwise calculated under this subsection, and dividing the sum of11
those 3 membership figures by 3.12
(ii) The district's actual membership for that fiscal year as13
otherwise calculated under this subsection.14
(Z)(y) Full-time equated memberships for special education15
pupils who are not enrolled in kindergarten but are enrolled in a16
classroom program under R 340.1754 of the Michigan administrative17
code shall be determined by dividing the number of class hours18
scheduled and provided per year by 450. Full-time equated19
memberships for special education pupils who are not enrolled in20
kindergarten but are receiving early childhood special education21
services under R 340.1755 or 340.1862 of the Michigan22
administrative code shall be determined by dividing the number of23
hours of service scheduled and provided per year per pupil by 180.24
(AA)(z) A pupil of a district that begins its school year25
after Labor day who is enrolled in an intermediate district program26
that begins before Labor day shall not be considered to be less27
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than a full-time pupil solely due to instructional time scheduled1
but not attended by the pupil before Labor day.2
(BB)(aa) For the first year in which a pupil is counted in3
membership on the pupil membership count day in a middle college4
program, the membership is the average of the full-time equated5
membership on the pupil membership count day and on the6
supplemental count day for the current school year, as determined7
by the department.8
(CC)(bb) A district, a public school academy, or the education9
achievement system that educates a pupil who attends a United10
States Olympic education center may count the pupil in membership11
regardless of whether or not the pupil is a resident of this state.12
(DD)(cc) A pupil enrolled in a district other than the pupil's13
district of residence pursuant to section 1148(2) of the revised14
school code, MCL 380.1148, shall be counted in the educating15
district or the education achievement system.16
(EE)(dd) For a pupil enrolled in a dropout recovery program17
that meets the requirements of section 23a, the pupil shall be18
counted as 1/12 of a full-time equated membership for each month19
that the district operating the program reports that the pupil was20
enrolled in the program and was in full attendance. However, if the21
special membership counting provisions under this subdivision and22
the operation of the other membership counting provisions under23
this subsection result in a pupil being counted as more than 1.024
FTE in a fiscal year, the payment made for the pupil under sections25
22a and 22b shall not be based on more than 1.0 FTE for that pupil,26
and any portion of an FTE for that pupil that exceeds 1.0 shall27
instead be paid under section 25f. The district operating the28
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program shall report to the center the number of pupils who were1
enrolled in the program and were in full attendance for a month not2
later than the tenth day of the next month. A district shall not3
report a pupil as being in full attendance for a month unless both4
of the following are met:5
(i) A personalized learning plan is in place on or before the6
first school day of the month for the first month the pupil7
participates in the program.8
(ii) The pupil meets the district's definition under section9
23a of satisfactory monthly progress for that month or, if the10
pupil does not meet that definition of satisfactory monthly11
progress for that month, the pupil did meet that definition of12
satisfactory monthly progress in the immediately preceding month13
and appropriate interventions are implemented within 10 school days14
after it is determined that the pupil does not meet that definition15
of satisfactory monthly progress.16
(6)(5) "Public school academy" means that term as defined in17
section 5 of the revised school code, MCL 380.5.18
(7)(6) "Pupil" means a person in membership in a public19
school. A district must have the approval of the pupil's district20
of residence to count the pupil in membership, except approval by21
the pupil's district of residence is not required for any of the22
following:23
(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in24
accordance with section 166b.25
(b) A pupil receiving 1/2 or less of his or her instruction in26
a district other than the pupil's district of residence.27
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(c) A pupil enrolled in a public school academy or the1
education achievement system.2
(d) A pupil enrolled in a district other than the pupil's3
district of residence under an intermediate district schools of4
choice pilot program as described in section 91a or former section5
91 if the intermediate district and its constituent districts have6
been exempted from section 105.7
(e) A pupil enrolled in a district other than the pupil's8
district of residence if the pupil is enrolled in accordance with9
section 105 or 105c.10
(f) A pupil who has made an official written complaint or11
whose parent or legal guardian has made an official written12
complaint to law enforcement officials and to school officials of13
the pupil's district of residence that the pupil has been the14
victim of a criminal sexual assault or other serious assault, if15
the official complaint either indicates that the assault occurred16
at school or that the assault was committed by 1 or more other17
pupils enrolled in the school the pupil would otherwise attend in18
the district of residence or by an employee of the district of19
residence. A person who intentionally makes a false report of a20
crime to law enforcement officials for the purposes of this21
subdivision is subject to section 411a of the Michigan penal code,22
1931 PA 328, MCL 750.411a, which provides criminal penalties for23
that conduct. As used in this subdivision:24
(i) "At school" means in a classroom, elsewhere on school25
premises, on a school bus or other school-related vehicle, or at a26
school-sponsored activity or event whether or not it is held on27
school premises.28
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(ii) "Serious assault" means an act that constitutes a felony1
violation of chapter XI of the Michigan penal code, 1931 PA 328,2
MCL 750.81 to 750.90h, or that constitutes an assault and3
infliction of serious or aggravated injury under section 81a of the4
Michigan penal code, 1931 PA 328, MCL 750.81a.5
(g) A pupil whose district of residence changed after the6
pupil membership count day and before the supplemental count day7
and who continues to be enrolled on the supplemental count day as a8
nonresident in the district in which he or she was enrolled as a9
resident on the pupil membership count day of the same school year.10
(h) A pupil enrolled in an alternative education program11
operated by a district other than his or her district of residence12
who meets 1 or more of the following:13
(i) The pupil has been suspended or expelled from his or her14
district of residence for any reason, including, but not limited15
to, a suspension or expulsion under section 1310, 1311, or 1311a of16
the revised school code, MCL 380.1310, 380.1311, and 380.1311a.17
(ii) The pupil had previously dropped out of school.18
(iii) The pupil is pregnant or is a parent.19
(iv) The pupil has been referred to the program by a court.20
(i) A pupil enrolled in the Michigan virtual school, for the21
pupil's enrollment in the Michigan virtual school.22
(j) A pupil who is the child of a person who works at the23
district or who is the child of a person who worked at the district24
as of the time the pupil first enrolled in the district but who no25
longer works at the district due to a workforce reduction. As used26
in this subdivision, "child" includes an adopted child, stepchild,27
or legal ward.28
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(k) An expelled pupil who has been denied reinstatement by the1
expelling district and is reinstated by another school board under2
section 1311 or 1311a of the revised school code, MCL 380.1311 and3
380.1311a.4
(l) A pupil enrolled in a district other than the pupil's5
district of residence in a middle college program if the pupil's6
district of residence and the enrolling district are both7
constituent districts of the same intermediate district.8
(m) A pupil enrolled in a district other than the pupil's9
district of residence who attends a United States Olympic education10
center.11
(n) A pupil enrolled in a district other than the pupil's12
district of residence pursuant to section 1148(2) of the revised13
school code, MCL 380.1148.14
(o) A pupil who enrolls in a district other than the pupil's15
district of residence as a result of the pupil's school not making16
adequate yearly progress under the no child left behind act of17
2001, Public Law 107-110.18
(p) An online learning pupil enrolled in a district other than19
the pupil's district of residence as an eligible pupil under20
section 21f. However, if a district educates pupils who reside in21
another district and if the primary instructional site for those22
pupils is established by the educating district after 2009-2010 and23
is located within the boundaries of that other district, the24
educating district must have the approval of that other district to25
count those pupils in membership.26
(Q) A PUPIL ENROLLED IN AN EDUCATION DISTRICT IF THE PUPIL27
ALSO IS RESIDENT IN A QUALIFYING SCHOOL DISTRICT THAT TRANSFERRED28
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FUNCTIONS AND RESPONSIBILITIES TO THAT EDUCATION DISTRICT UNDER1
SECTION 402 OF THE REVISED SCHOOL CODE, MCL 380.402.2
(7) "Pupil membership count day" of a district or intermediate3
district means:4
(a) Except as provided in subdivision (b), the first Wednesday5
in October each school year or, for a district or building in which6
school is not in session on that Wednesday due to conditions not7
within the control of school authorities, with the approval of the8
superintendent, the immediately following day on which school is in9
session in the district or building.10
(b) For a district or intermediate district maintaining school11
during the entire school year, the following days:12
(i) Fourth Wednesday in July.13
(ii) First Wednesday in October.14
(iii) Second Wednesday in February.15
(iv) Fourth Wednesday in April.16
(8) "Pupils in grades K to 12 actually enrolled and in regular17
daily attendance" means pupils in grades K to 12 in attendance and18
receiving instruction in all classes for which they are enrolled on19
the pupil membership count day or the supplemental count day, as20
applicable. Except as otherwise provided in this subsection, a21
pupil who is absent from any of the classes in which the pupil is22
enrolled on the pupil membership count day or supplemental count23
day and who does not attend each of those classes during the 1024
consecutive school days immediately following the pupil membership25
count day or supplemental count day, except for a pupil who has26
been excused by the district, shall not be counted as 1.0 full-time27
equated membership. A pupil who is excused from attendance on the28
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pupil membership count day or supplemental count day and who fails1
to attend each of the classes in which the pupil is enrolled within2
30 calendar days after the pupil membership count day or3
supplemental count day shall not be counted as 1.0 full-time4
equated membership. In addition, a pupil who was enrolled and in5
attendance in a district, an intermediate district, a public school6
academy, or the education achievement system before the pupil7
membership count day or supplemental count day of a particular year8
but was expelled or suspended on the pupil membership count day or9
supplemental count day shall only be counted as 1.0 full-time10
equated membership if the pupil resumed attendance in the district,11
intermediate district, public school academy, or education12
achievement system within 45 days after the pupil membership count13
day or supplemental count day of that particular year. Pupils not14
counted as 1.0 full-time equated membership due to an absence from15
a class shall be counted as a prorated membership for the classes16
the pupil attended. For purposes of this subsection, "class" means17
a period of time in 1 day when pupils and a certificated teacher or18
legally qualified substitute teacher are together and instruction19
is taking place.20
(9) "Rule" means a rule promulgated pursuant to the21
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to22
24.328.23
(10) "The revised school code" means 1976 PA 451, MCL 380.1 to24
380.1852.25
(11) "School district of the first class", "first class school26
district", and "district of the first class" mean, for the purposes27
of this article only, AND ONLY UNTIL JUNE 30, 2016, a district that28
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had at least 40,000 pupils in membership for the immediately1
preceding fiscal year.2
(12) "SCHOOL EMPOWERMENT ZONE" MEANS A BODY CORPORATE3
ESTABLISHED UNDER PART 7C OF THE REVISED SCHOOL CODE.4
(13) (12) "School fiscal year" means a fiscal year that5
commences July 1 and continues through June 30.6
(14) (13) "State board" means the state board of education.7
(15) (14) "Superintendent", unless the context clearly refers8
to a district or intermediate district superintendent, means the9
superintendent of public instruction described in section 3 of10
article VIII of the state constitution of 1963.11
(16) (15) "Supplemental count day" means the day on which the12
supplemental pupil count is conducted under section 6a.13
(17) (16) "Tuition pupil" means a pupil of school age14
attending school in a district other than the pupil's district of15
residence for whom tuition may be charged to the district of16
residence. Tuition pupil does not include a pupil who is a special17
education pupil, a pupil described in subsection (6)(c) to (p), or18
a pupil whose parent or guardian voluntarily enrolls the pupil in a19
district that is not the pupil's district of residence. A pupil's20
district of residence shall not require a high school tuition21
pupil, as provided under section 111, to attend another school22
district after the pupil has been assigned to a school district.23
(18) (17) "State school aid fund" means the state school aid24
fund established in section 11 of article IX of the state25
constitution of 1963.26
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(19) (18) "Taxable value" means the taxable value of property1
as determined under section 27a of the general property tax act,2
1893 PA 206, MCL 211.27a.3
(20) (19) "Textbook" means a book, electronic book, or other4
instructional print or electronic resource that is selected and5
approved by the governing board of a district or, for an6
achievement school, by the chancellor of the achievement authority7
and that contains a presentation of principles of a subject, or8
that is a literary work relevant to the study of a subject required9
for the use of classroom pupils, or another type of course material10
that forms the basis of classroom instruction.11
(21) (20) "Total state aid" or "total state school aid" means12
the total combined amount of all funds due to a district,13
intermediate district, SCHOOL EMPOWERMENT ZONE, or other entity14
under all of the provisions of this article.15
Sec. 20. (1) For 2014-2015, both of the following apply:16
(a) The basic foundation allowance is $8,099.00.17
(b) The minimum foundation allowance is $7,126.00.18
(2) The amount of each district's foundation allowance shall19
be calculated as provided in this section, using a basic foundation20
allowance in the amount specified in subsection (1).21
(3) Except as otherwise provided in this section, the amount22
of a district's foundation allowance shall be calculated as23
follows, using in all calculations the total amount of the24
district's foundation allowance as calculated before any proration:25
(a) Except as otherwise provided in this subdivision, for a26
district that had a foundation allowance for the immediately27
preceding state fiscal year that was equal to the minimum28
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foundation allowance for the immediately preceding state fiscal1
year, but less than the basic foundation allowance for the2
immediately preceding state fiscal year, the district shall receive3
a foundation allowance in an amount equal to the sum of the4
district's foundation allowance for the immediately preceding state5
fiscal year plus the difference between twice the dollar amount of6
the adjustment from the immediately preceding state fiscal year to7
the current state fiscal year made in the basic foundation8
allowance and [(the difference between the basic foundation9
allowance for the current state fiscal year and basic foundation10
allowance for the immediately preceding state fiscal year minus11
$10.00) times (the difference between the district's foundation12
allowance for the immediately preceding state fiscal year and the13
minimum foundation allowance for the immediately preceding state14
fiscal year) divided by the difference between the basic foundation15
allowance for the current state fiscal year and the minimum16
foundation allowance for the immediately preceding state fiscal17
year]. However, the foundation allowance for a district that had18
less than the basic foundation allowance for the immediately19
preceding state fiscal year shall not exceed the basic foundation20
allowance for the current state fiscal year. For the purposes of21
this subdivision, for 2014-2015, the minimum foundation allowance22
for the immediately preceding state fiscal year shall be considered23
to be $7,076.00. For 2014-2015, for a district that had a24
foundation allowance for the immediately preceding state fiscal25
year that was at least equal to the minimum foundation allowance26
for the immediately preceding state fiscal year but less than the27
basic foundation allowance for the immediately preceding state28
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fiscal year, the district shall receive a foundation allowance in1
an amount equal to the district's foundation allowance for 2013-2
2014 plus $50.00.3
(b) Except as otherwise provided in this subsection, for a4
district that in the immediately preceding state fiscal year had a5
foundation allowance in an amount equal to the amount of the basic6
foundation allowance for the immediately preceding state fiscal7
year, the district shall receive a foundation allowance for 2014-8
2015 in an amount equal to the basic foundation allowance for 2014-9
2015.10
(c) For a district that had a foundation allowance for the11
immediately preceding state fiscal year that was greater than the12
basic foundation allowance for the immediately preceding state13
fiscal year, the district's foundation allowance is an amount equal14
to the sum of the district's foundation allowance for the15
immediately preceding state fiscal year plus the lesser of the16
increase in the basic foundation allowance for the current state17
fiscal year, as compared to the immediately preceding state fiscal18
year, or the product of the district's foundation allowance for the19
immediately preceding state fiscal year times the percentage20
increase in the United States consumer price index in the calendar21
year ending in the immediately preceding fiscal year as reported by22
the May revenue estimating conference conducted under section 367b23
of the management and budget act, 1984 PA 431, MCL 18.1367b.24
(d) For a district that has a foundation allowance that is not25
a whole dollar amount, the district's foundation allowance shall be26
rounded up to the nearest whole dollar.27
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(e) For a district that received a payment under section 22c1
as that section was in effect for 2013-2014, the district's 2013-2
2014 foundation allowance shall be considered to have been an3
amount equal to the sum of the district's actual 2013-20144
foundation allowance as otherwise calculated under this section5
plus the per pupil amount of the district's equity payment for6
2013-2014 under section 22c as that section was in effect for 2013-7
2014.8
(F) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, FOR AN9
EDUCATION DISTRICT, THE FOUNDATION ALLOWANCE SHALL BE AN AMOUNT10
EQUAL TO THE HIGHEST FOUNDATION ALLOWANCE OF A QUALIFYING SCHOOL11
DISTRICT UNDER SECTION 402 OF THE REVISED SCHOOL CODE, MCL 380.402,12
LOCATED WITHIN THE SAME GEOGRAPHIC AREA AS THE EDUCATION DISTRICT.13
(4) Except as otherwise provided in this subsection, the state14
portion of a district's foundation allowance is an amount equal to15
the district's foundation allowance or the basic foundation16
allowance for the current state fiscal year, whichever is less,17
minus the local portion of the district's foundation allowance18
divided by the district's membership excluding special education19
pupils. For a district described in subsection (3)(c), the state20
portion of the district's foundation allowance is an amount equal21
to $6,962.00 plus the difference between the district's foundation22
allowance for the current state fiscal year and the district's23
foundation allowance for 1998-99, minus the local portion of the24
district's foundation allowance divided by the district's25
membership excluding special education pupils. For a district that26
has a millage reduction required under section 31 of article IX of27
the state constitution of 1963, the state portion of the district's28
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foundation allowance shall be calculated as if that reduction did1
not occur. For a receiving district, if school operating taxes2
continue to be levied on behalf of a dissolved district that has3
been attached in whole or in part to the receiving district to4
satisfy debt obligations of the dissolved district under section 125
of the revised school code, MCL 380.12, the taxable value per6
membership pupil of property in the receiving district used for the7
purposes of this subsection does not include the taxable value of8
property within the geographic area of the dissolved district. FOR9
AN EDUCATION DISTRICT ORGANIZED UNDER PART 2A OF THE REVISED SCHOOL10
CODE, MCL 380.101 TO 380.110, IF SCHOOL OPERATING TAXES CONTINUE TO11
BE LEVIED BY A QUALIFYING SCHOOL DISTRICT UNDER SECTION 402 OF THE12
REVISED SCHOOL CODE, MCL 380.402, WITH THE SAME GEOGRAPHIC AREA AS13
THE EDUCATION DISTRICT, THE TAXABLE VALUE PER MEMBERSHIP PUPIL OF14
PROPERTY IN THE EDUCATION USED FOR THE PURPOSES OF THIS SUBSECTION15
DOES NOT INCLUDE THE TAXABLE VALUE OF PROPERTY WITHIN THE16
GEOGRAPHIC AREA OF THE QUALIFYING SCHOOL DISTRICT.17
(5) The allocation calculated under this section for a pupil18
shall be based on the foundation allowance of the pupil's district19
of residence. IF A PUPIL'S RESIDENCE IS IN BOTH AN EDUCATION20
DISTRICT AND ANOTHER SCHOOL DISTRICT, FOR PURPOSES OF THIS21
SUBSECTION, THE PUPIL'S DISTRICT OF RESIDENCE SHALL BE THE22
EDUCATION DISTRICT. For a pupil enrolled pursuant to section 105 or23
105c in a district other than the pupil's district of residence,24
the allocation calculated under this section shall be based on the25
lesser of the foundation allowance of the pupil's district of26
residence or the foundation allowance of the educating district.27
For a pupil in membership in a K-5, K-6, or K-8 district who is28
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enrolled in another district in a grade not offered by the pupil's1
district of residence, the allocation calculated under this section2
shall be based on the foundation allowance of the educating3
district if the educating district's foundation allowance is4
greater than the foundation allowance of the pupil's district of5
residence.6
(6) Except as otherwise provided in this subsection, for7
pupils in membership, other than special education pupils, in a8
public school academy, the allocation calculated under this section9
is an amount per membership pupil other than special education10
pupils in the public school academy equal to the foundation11
allowance of the district in which the public school academy is12
located or the state maximum public school academy allocation,13
whichever is less. However, a public school academy that had an14
allocation under this subsection before 2009-2010 that was equal to15
the sum of the local school operating revenue per membership pupil16
other than special education pupils for the district in which the17
public school academy is located and the state portion of that18
district's foundation allowance shall not have that allocation19
reduced as a result of the 2010 amendment to this subsection.20
Notwithstanding section 101, for a public school academy that21
begins operations after the pupil membership count day, the amount22
per membership pupil calculated under this subsection shall be23
adjusted by multiplying that amount per membership pupil by the24
number of hours of pupil instruction provided by the public school25
academy after it begins operations, as determined by the26
department, divided by the minimum number of hours of pupil27
instruction required under section 101(3). The result of this28
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calculation shall not exceed the amount per membership pupil1
otherwise calculated under this subsection.2
(7) Except as otherwise provided in this subsection, for3
pupils attending an achievement school and in membership in the4
education achievement system, other than special education pupils,5
the allocation calculated under this section is an amount per6
membership pupil other than special education pupils equal to the7
foundation allowance of the district in which the achievement8
school is located, not to exceed the basic foundation allowance.9
Notwithstanding section 101, for an achievement school that begins10
operation after the pupil membership count day, the amount per11
membership pupil calculated under this subsection shall be adjusted12
by multiplying that amount per membership pupil by the number of13
hours of pupil instruction provided by the achievement school after14
it begins operations, as determined by the department, divided by15
the minimum number of hours of pupil instruction required under16
section 101(3). The result of this calculation shall not exceed the17
amount per membership pupil otherwise calculated under this18
subsection. For the purposes of this subsection, if a public school19
is transferred from a district to the state school reform/redesign20
district or the achievement authority under section 1280c of the21
revised school code, MCL 380.1280c, that public school is22
considered to be an achievement school within the education23
achievement system and not a school that is part of a district, and24
a pupil attending that public school is considered to be in25
membership in the education achievement system and not in26
membership in the district that operated the school before the27
transfer.28
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(8) Subject to subsection (4), for a district that is formed1
or reconfigured after June 1, 2002 by consolidation of 2 or more2
districts or by annexation, the resulting district's foundation3
allowance under this section beginning after the effective date of4
the consolidation or annexation shall be the lesser of the sum of5
the average of the foundation allowances of each of the original or6
affected districts, calculated as provided in this section,7
weighted as to the percentage of pupils in total membership in the8
resulting district who reside in the geographic area of each of the9
original or affected districts plus $100.00 or the highest10
foundation allowance among the original or affected districts. This11
subsection does not apply to a receiving district unless there is a12
subsequent consolidation or annexation that affects the district.13
(9) Each fraction used in making calculations under this14
section shall be rounded to the fourth decimal place and the dollar15
amount of an increase in the basic foundation allowance shall be16
rounded to the nearest whole dollar.17
(10) State payments related to payment of the foundation18
allowance for a special education pupil are not calculated under19
this section but are instead calculated under section 51a.20
(11) To assist the legislature in determining the basic21
foundation allowance for the subsequent state fiscal year, each22
revenue estimating conference conducted under section 367b of the23
management and budget act, 1984 PA 431, MCL 18.1367b, shall24
calculate a pupil membership factor, a revenue adjustment factor,25
and an index as follows:26
(a) The pupil membership factor shall be computed by dividing27
the estimated membership in the school year ending in the current28
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state fiscal year, excluding intermediate district membership, by1
the estimated membership for the school year ending in the2
subsequent state fiscal year, excluding intermediate district3
membership. If a consensus membership factor is not determined at4
the revenue estimating conference, the principals of the revenue5
estimating conference shall report their estimates to the house and6
senate subcommittees responsible for school aid appropriations not7
later than 7 days after the conclusion of the revenue conference.8
(b) The revenue adjustment factor shall be computed by9
dividing the sum of the estimated total state school aid fund10
revenue for the subsequent state fiscal year plus the estimated11
total state school aid fund revenue for the current state fiscal12
year, adjusted for any change in the rate or base of a tax the13
proceeds of which are deposited in that fund and excluding money14
transferred into that fund from the countercyclical budget and15
economic stabilization fund under the management and budget act,16
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated17
total school aid fund revenue for the current state fiscal year18
plus the estimated total state school aid fund revenue for the19
immediately preceding state fiscal year, adjusted for any change in20
the rate or base of a tax the proceeds of which are deposited in21
that fund. If a consensus revenue factor is not determined at the22
revenue estimating conference, the principals of the revenue23
estimating conference shall report their estimates to the house and24
senate subcommittees responsible for school aid appropriations not25
later than 7 days after the conclusion of the revenue conference.26
(c) The index shall be calculated by multiplying the pupil27
membership factor by the revenue adjustment factor. If a consensus28
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index is not determined at the revenue estimating conference, the1
principals of the revenue estimating conference shall report their2
estimates to the house and senate subcommittees responsible for3
school aid appropriations not later than 7 days after the4
conclusion of the revenue conference.5
(12) Payments to districts, public school academies, or the6
education achievement system shall not be made under this section.7
Rather, the calculations under this section shall be used to8
determine the amount of state payments under section 22b.9
(13) If an amendment to section 2 of article VIII of the state10
constitution of 1963 allowing state aid to some or all nonpublic11
schools is approved by the voters of this state, each foundation12
allowance or per pupil payment calculation under this section may13
be reduced.14
(14) As used in this section:15
(a) "Certified mills" means the lesser of 18 mills or the16
number of mills of school operating taxes levied by the district in17
1993-94.18
(b) "Combined state and local revenue" means the aggregate of19
the district's state school aid received by or paid on behalf of20
the district under this section and the district's local school21
operating revenue.22
(c) "Combined state and local revenue per membership pupil"23
means the district's combined state and local revenue divided by24
the district's membership excluding special education pupils.25
(d) "Current state fiscal year" means the state fiscal year26
for which a particular calculation is made.27
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(e) "Dissolved district" means a district that loses its1
organization, has its territory attached to 1 or more other2
districts, and is dissolved as provided under section 12 of the3
revised school code, MCL 380.12.4
(f) "Immediately preceding state fiscal year" means the state5
fiscal year immediately preceding the current state fiscal year.6
(g) "Local portion of the district's foundation allowance"7
means an amount that is equal to the difference between (the sum of8
the product of the taxable value per membership pupil of all9
property in the district that is nonexempt property times the10
district's certified mills and, for a district with certified mills11
exceeding 12, the product of the taxable value per membership pupil12
of property in the district that is commercial personal property13
times the certified mills minus 12 mills) and (the quotient of the14
product of the captured assessed valuation under tax increment15
financing acts times the district's certified mills divided by the16
district's membership excluding special education pupils).17
(h) "Local school operating revenue" means school operating18
taxes levied under section 1211 of the revised school code, MCL19
380.1211. For a receiving district, if school operating taxes are20
to be levied on behalf of a dissolved district that has been21
attached in whole or in part to the receiving district to satisfy22
debt obligations of the dissolved district under section 12 of the23
revised school code, MCL 380.12, local school operating revenue24
does not include school operating taxes levied within the25
geographic area of the dissolved district.26
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(i) "Local school operating revenue per membership pupil"1
means a district's local school operating revenue divided by the2
district's membership excluding special education pupils.3
(j) "Maximum public school academy allocation", except as4
otherwise provided in this subdivision, means the maximum per-pupil5
allocation as calculated by adding the highest per-pupil allocation6
among all public school academies for the immediately preceding7
state fiscal year plus the difference between twice the amount of8
the difference between the basic foundation allowance for the9
current state fiscal year and the basic foundation for the10
immediately preceding state fiscal year and [(the amount of the11
difference between the basic foundation allowance for the current12
state fiscal year and the basic foundation for the immediately13
preceding state fiscal year minus $10.00) times (the difference14
between the highest per-pupil allocation among all public school15
academies for the immediately preceding state fiscal year and the16
minimum foundation allowance for the immediately preceding state17
fiscal year) divided by the difference between the basic foundation18
allowance for the current state fiscal year and the minimum19
foundation allowance for the immediately preceding state fiscal20
year]. For the purposes of this subdivision, for 2014-2015, the21
minimum foundation allowance for the immediately preceding state22
fiscal year shall be considered to be $7,076.00. For 2014-2015, the23
maximum public school academy allocation is $7,218.00.24
(k) "Membership" means the definition of that term under25
section 6 as in effect for the particular fiscal year for which a26
particular calculation is made.27
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(l) "Nonexempt property" means property that is not a1
principal residence, qualified agricultural property, qualified2