Bill Text: MI HB5384 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: School aid; foundation allowance; per-pupil allocation for cyber schools; modify and earmark into at-risk funding. Amends secs. 18, 20, 22b & 31a of 1979 PA 94 (MCL 388.1618 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-11 - Bill Electronically Reproduced 01/10/2018 [HB5384 Detail]

Download: Michigan-2017-HB5384-Introduced.html

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HOUSE BILL No. 5384

 

 

January 10, 2018, Introduced by Reps. Canfield, Faris, Elder, Cambensy, Liberati, Pagan, Pagel, Calley, Schor, Inman, Chang, LaGrand, Lucido, Howell, Howrylak, Phelps and Guerra and referred to the Committee on Appropriations.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 18, 20, 22b, and 31a (MCL 388.1618, 388.1620,

 

388.1622b, and 388.1631a), sections 18, 20, and 22b as amended by

 

2017 PA 108 and section 31a as amended by 2017 PA 143.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, other supplies, and any other school

 

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

 

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

 

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

 

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

 

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

 

not be applied or taken for a purpose other than as provided in

 

this section. The department shall determine the reasonableness of

 

expenditures and may withhold from a recipient of funds under this

 

article the apportionment otherwise due upon a violation by the

 

recipient.

 

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

 

budget in a manner that complies with the uniform budgeting and

 

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

 

after a district board adopts its annual operating budget for the

 

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

 

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

 

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

 

may make the information available through a link on its

 

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

 

prescribed by the department:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

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

 

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

 

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

 

following 2 pie charts:

 

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

 

following subcategories:

 

     (A) Salaries and wages.

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

 

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

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

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

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

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

 

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

 

any other type of benefits that would constitute health care

 

services, offered to any bargaining unit or employee in the

 

district.

 

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

 

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

 

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

 

health benefits act, 2007 PA 106, MCL 124.75.

 

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

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

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

 

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

 

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

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

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

 

benefit included in the compensation package for the superintendent

 

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

 

exceeds $100,000.00.

 

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

 

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

 

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

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under the

 

revised school code.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

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

 

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

 

individual's authorized use of the credit card.

 

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

 

the school administrator of the district that is fully or partially

 

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

 

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

 

individual on the trip, destination, and purpose.

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

 

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

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) In addition to the information required under subsection

 

(2), a district that is a cyber school, as defined in section 551

 

of the revised school code, MCL 380.551, shall make available

 

through a link on the cyber school's website homepage a breakdown

 

of expenditures coded as purchased or contracted services as if

 

they were not purchased or contracted services, broken into the

 

following subcategories:

 

     (a) Salaries and wages.

 

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

 

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

 

benefits.

 

     (c) Retirement benefit costs.

 

     (d) All other personnel costs.

 

     (e) Any profit to an educational management organization with

 

which the cyber school has a contract that is related to the

 

contract with the cyber school.

 

     (5) (4) For the purposes of determining the reasonableness of

 

expenditures, whether a district or intermediate district has

 

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

 

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

 

apply:

 

     (a) The department shall require that each district and

 

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

 

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

 

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

 

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

 

certified public accountant or by the intermediate district

 

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

 

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

 

accountant, the intermediate superintendent, or the auditor general

 

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

 

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

 

immediately preceding fiscal years.

 

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

 

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

 

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

 

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

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

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

 

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

 

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

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

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

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

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

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

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

 

1 each year for reporting the prior fiscal year data:

 

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

 

with the intermediate district and the department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall enter the pupil

 

membership audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

     (f) The annual financial audit reports and pupil accounting

 

procedures reports shall be available to the public in compliance

 

with the freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

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

 

shall notify the state budget director and the legislative

 

appropriations subcommittees responsible for review of the school

 

aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures

 

report required under this section for the school year ending in

 

the immediately preceding fiscal year.

 

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

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

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

 

financial statements and consistent with accounting manuals and

 

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

 

intermediate district, the report shall also contain the website

 

address where the department can access the report required under

 

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

 

shall ensure that the prescribed Michigan public school accounting

 

manual chart of accounts includes standard conventions to

 

distinguish expenditures by allowable fund function and object. The

 

functions shall include at minimum categories for instruction,

 

pupil support, instructional staff support, general administration,

 

school administration, business administration, transportation,

 

facilities operation and maintenance, facilities acquisition, and

 

debt service; and shall include object classifications of salary,

 

benefits, including categories for active employee health

 

expenditures, purchased services, supplies, capital outlay, and

 

other. Districts shall report the required level of detail

 

consistent with the manual as part of the comprehensive annual

 

financial report.

 

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

 

intermediate district shall file with the department the special

 

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

 

the manner prescribed by the department.

 

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

 

intermediate district shall file with the center the transportation

 

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

 

prescribed by the center.

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

 

pupil auditing manuals at least annually and shall periodically

 

update those manuals to reflect changes in this article.

 

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

 

purchases property using money received under this article, the

 

public school academy shall retain ownership of the property unless

 

the public school academy sells the property at fair market value.

 

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

 

comply with subsections (4), (5), (6), and (7), and (8), or if the

 

department determines that the financial data required under

 

subsection (5) (6) are not consistent with audited financial

 

statements, the department shall withhold all state school aid due

 

to the district or intermediate district under this article,

 

beginning with the next payment due to the district or intermediate

 

district, until the district or intermediate district complies with

 

subsections (4), (5), (6), and (7), and (8). If the district or

 

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

 

(6), and (7), and (8) by the end of the fiscal year, the district

 

or intermediate district forfeits the amount withheld.

 

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

 

comply with subsection (2) , or (4), as applicable, the department

 

may withhold up to 10% of the total state school aid due to the

 

district or intermediate district under this article, beginning

 

with the next payment due to the district or intermediate district,

 

until the district or intermediate district complies with

 

subsection (2) or (4), as applicable. If the district or

 

intermediate district does not comply with subsection (2) or (4),

as applicable, by the end of the fiscal year, the district or

 

intermediate district forfeits the amount withheld.

 

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

 

intermediate district offers virtual learning under section 21f,

 

the district or intermediate district shall submit to the

 

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

 

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

 

least all of the following information concerning the operation of

 

virtual learning for the immediately preceding school fiscal year:

 

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

 

and of each district that enrolled students in the virtual

 

learning.

 

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

 

learning and the total number of membership pupils enrolled in the

 

virtual learning.

 

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

 

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

 

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

 

enrolling in the district offering virtual learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

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

 

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

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

training, virtual instruction and instructional support, personnel,

 

hardware and software, payment to each virtual learning provider,

 

and other costs associated with operating virtual learning.

 

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

 

the district and the state in which each virtual education provider

 

is headquartered.

 

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

 

submit to the house and senate appropriations subcommittees on

 

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

 

senate fiscal agencies a report summarizing the per-pupil costs by

 

vendor type of virtual courses available under section 21f.

 

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

 

"vendor type" means the following:

 

     (a) Virtual courses provided by the Michigan Virtual

 

University.

 

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

 

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

 

code, MCL 380.551.

 

     (c) Virtual courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

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

 

intermediate district.

 

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

 

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

 

compliance with this section.

 

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

 

every 3 months after that date, the department shall submit to the

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

 

house standing committees on education an itemized list of

 

allocations under this article to any association or consortium

 

consisting of associations. The report shall detail the recipient

 

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

 

funds were distributed.

 

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

 

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

 

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

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

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

 

district that had a foundation allowance for the immediately

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

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

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$20.00) times (the difference between the district's foundation

 

allowance for the immediately preceding state fiscal year and the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year.] However, the foundation allowance for a district that had

 

less than the basic foundation allowance for the immediately

 

preceding state fiscal year shall not exceed the basic foundation

 

allowance for the current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2017-

 

2018 in an amount equal to the basic foundation allowance for 2017-

 

2018.

 

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

 

immediately preceding state fiscal year that was greater than the

 

basic foundation allowance for the immediately preceding state

 

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

 

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

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic foundation allowance for the current state

fiscal year, as compared to the immediately preceding state fiscal

 

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

 

immediately preceding state fiscal year times the percentage

 

increase in the United States consumer price index Consumer Price

 

Index in the calendar year ending in the immediately preceding

 

fiscal year as reported by the May revenue estimating conference

 

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

 

PA 431, MCL 18.1367b.

 

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

 

a whole dollar amount, the district's foundation allowance shall be

 

rounded up to the nearest whole dollar.

 

     (e) For a district that received a foundation allowance

 

supplemental payment calculated under section 20m and paid under

 

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

 

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

 

the district's actual 2016-2017 foundation allowance as otherwise

 

calculated under this section plus the lesser of the per pupil per-

 

pupil amount of the district's supplemental payment for 2016-2017

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year times the percentage increase in the United States consumer

 

price index Consumer Price Index in the calendar year ending in the

 

immediately preceding fiscal year as reported by the May revenue

 

estimating conference conducted under section 367b of the

 

management and budget act, 1984 PA 431, MCL 18.1367b.

 

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

 

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

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

 

or the basic foundation allowance for the current state fiscal

 

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

 

foundation allowance. For a district described in subsection

 

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

 

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

 

difference between the district's foundation allowance for the

 

current state fiscal year and the district's foundation allowance

 

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

 

allowance. For a district that has a millage reduction required

 

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

 

the state portion of the district's foundation allowance shall be

 

calculated as if that reduction did not occur. For a receiving

 

district, if school operating taxes continue to be levied on behalf

 

of a dissolved district that has been attached in whole or in part

 

to the receiving district to satisfy debt obligations of the

 

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

 

380.12, the taxable value per membership pupil of property in the

 

receiving district used for the purposes of this subsection does

 

not include the taxable value of property within the geographic

 

area of the dissolved district. For a community district, if school

 

operating taxes continue to be levied by a qualifying school

 

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

 

with the same geographic area as the community district, the

 

taxable value per membership pupil of property in the community

 

district to be used for the purposes of this subsection does not

 

include the taxable value of property within the geographic area of

the community district.

 

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

 

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

 

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

 

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

 

allocation calculated under this section shall be based on the

 

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

 

residence or the foundation allowance of the educating district.

 

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

 

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

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

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

 

residence. The calculation under this subsection shall take into

 

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

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

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

 

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

 

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

 

school district, the allocation calculated under this section is an

amount per membership pupil other than special education pupils in

 

the public school academy equal to the foundation allowance of the

 

district that authorized the public school academy or the state

 

maximum public school academy allocation, whichever is less.

 

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

 

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

 

school operating revenue per membership pupil other than special

 

education pupils for the district in which the public school

 

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

 

foundation allowance shall not have that allocation reduced as a

 

result of the 2010 amendment to this subsection. Notwithstanding

 

section 101, for a public school academy that begins operations

 

after the pupil membership count day, the amount per membership

 

pupil calculated under this subsection shall be adjusted by

 

multiplying that amount per membership pupil by the number of hours

 

of pupil instruction provided by the public school academy after it

 

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

 

minimum number of hours of pupil instruction required under section

 

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

 

per membership pupil otherwise calculated under this subsection.

 

Beginning in 2017-2018, for pupils in membership, other than

 

special education pupils, in a public school academy that was

 

issued a contract under section 552 of the revised school code, MCL

 

380.552, to operate as a school of excellence that is a cyber

 

school and is in at least its second year of operation, the

 

allocation calculated under this section is an amount equal to 80%

 

of the amount as would otherwise be calculated under this

subsection for that public school academy.

 

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

 

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

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

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

 

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

 

geographic area as the community district.

 

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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

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

 

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

 

affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

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

 

subsequent consolidation or annexation that affects the district.

 

The calculation under this subsection shall take into account a

 

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

 

     (9) Each fraction used in making calculations under this

 

section shall be rounded to the fourth decimal place and the dollar

 

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

 

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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

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

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

     (12) Payments to districts and public school academies shall

 

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

 

section shall be used to determine the amount of state payments

 

under section 22b.

 

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

 

constitution of 1963 allowing state aid to some or all nonpublic

 

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

 

allowance or per-pupil payment calculation under this section may

 

be reduced.

     (14) As used in this section:

 

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

 

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

 

1993-94.

 

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

 

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

 

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

 

operating revenue.

 

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

 

means the district's combined state and local revenue divided by

 

the district's membership excluding special education pupils.

 

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

 

for which a particular calculation is made.

 

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

 

organization, has its territory attached to 1 or more other

 

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

 

revised school code, MCL 380.12.

 

     (f) "Immediately preceding state fiscal year" means the state

 

fiscal year immediately preceding the current state fiscal year.

 

     (g) "Local portion of the district's foundation allowance"

 

means an amount that is equal to the difference between (the sum of

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

district's certified mills and, for a district with certified mills

 

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

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills) and (the quotient of the

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

     (h) "Local school operating revenue" means school operating

 

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

 

380.1211. For a receiving district, if school operating taxes are

 

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

 

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

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

     (i) "Local school operating revenue per membership pupil"

 

means a district's local school operating revenue divided by the

 

district's membership excluding special education pupils.

 

     (j) "Maximum public school academy allocation", except as

 

otherwise provided in this subdivision, means the maximum per-pupil

 

allocation as calculated by adding the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation allowance for

 

the immediately preceding state fiscal year and [(the amount of the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation allowance for the

 

immediately preceding state fiscal year minus $20.00) times (the

 

difference between the highest per-pupil allocation among all

public school academies for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year.] For the purposes of this subdivision, for 2017-

 

2018, the maximum public school academy allocation is $7,631.00.

 

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

 

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

 

particular calculation is made.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

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

 

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

 

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

 

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

 

code, MCL 380.1211.

 

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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

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

 

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

 

380.1211, and retained for school operating purposes.

 

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

 

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

 

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

 

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

 

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

 

125.2670, or the corridor improvement authority act, 2005 PA 280,

 

MCL 125.2871 to 125.2899.

 

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

 

as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special

 

education pupils for the school year ending in the current state

 

fiscal year.

 

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

 

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

 

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

 

fund and general fund appropriations in section 11 and an amount

 

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

 

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

 

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

 

$3,949,500,000.00 from the state school aid fund and general fund

 

appropriations in section 11 and an amount not to exceed

 

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

 

appropriation in section 11. Except for money allocated from the

community district trust fund, money allocated under this section

 

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

 

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

 

supplement the allocations under sections 22a and 51c in order to

 

fully fund those calculated allocations for the same fiscal year.

 

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

 

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

 

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

 

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

 

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

 

allocation as otherwise calculated under this section shall be

 

increased by an amount equal to the amount of local school

 

operating tax revenue that would otherwise be due to the community

 

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

 

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

 

community district education trust fund allocation in subsection

 

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

 

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

 

of the foundation allowance under section 20(4).

 

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

 

each district shall do all of the following:

 

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

 

380.1280b.

 

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

 

code, MCL 380.1278a and 380.1278b.

 

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

 

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

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (e) Comply with section 21f.

 

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

 

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

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

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

 

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

 

state related to commercial or industrial property tax appeals,

 

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

 

impact revenues dedicated to the state school aid fund.

 

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

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 

constitutional obligations of this state have been fully funded

 

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

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

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

 

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

 

the escrowed funds are a work project appropriation and the funds

 

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

 

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

 

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

 

completed upon resolution of the litigation.

 

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

 

jurisdiction makes a final determination that this state is in

 

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

 

1963 regarding state payments to districts, the state budget

 

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

 

allocate from the discretionary funds for nonmandated payments

 

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

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

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

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

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

 

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

 

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

 

and shall exercise jurisdiction over the claim.

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

 

local claims review board or a court of competent jurisdiction that

 

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

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX Medicaid funds is

 

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

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

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

 

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

 

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

 

work project appropriation and the funds are carried forward into

 

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

 

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

 

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

 

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

 

right to terminate future federal title XIX Medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

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

 

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

 

to 1396v.1396w-5.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2017-2018 an

amount not to exceed $510,207,300.00 $526,207,300.00 for payments

 

to eligible districts and eligible public school academies for the

 

purposes of ensuring that pupils are proficient in English language

 

arts by the end of grade 3, that pupils are proficient in

 

mathematics by the end of grade 8, that pupils are attending school

 

regularly, that high school graduates are career and college ready,

 

and for the purposes under subsections (7) and (8).

 

     (2) For a district that has combined state and local revenue

 

per membership pupil under sections 20 and 20m that is greater than

 

the basic foundation allowance under section 20 for the current

 

fiscal year, the allocation under this section shall be an amount

 

equal to 30% of the allocation for which it would otherwise be

 

eligible under this section before any proration under subsection

 

(14).

 

     (3) For a district or public school academy to be eligible to

 

receive funding under this section, other than funding under

 

subsection (7) or (8), the district or public school academy, for

 

grades K to 3, shall comply with the requirements under section

 

1280f of the revised school code, MCL 380.1280f, and use resources

 

to address early literacy, and for at least grades 4 to 8 or, if

 

the district or public school academy does not operate all of

 

grades 4 to 8, for all of the grades it operates, must implement a

 

multi-tiered multitiered system of supports that is an evidence-

 

based model that uses data-driven problem solving to integrate

 

academic and behavioral instruction and that uses intervention

 

delivered to all pupils in varying intensities based on pupil

 

needs. This multi-tiered multitiered system of supports must

provide at least all of the following essential elements:

 

     (a) Implements effective instruction for all learners.

 

     (b) Intervenes early.

 

     (c) Provides a multi-tiered multitiered model of instruction

 

and intervention that provides the following:

 

     (i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of most pupils.

 

     (ii) Targeted group interventions.

 

     (iii) Intense individual interventions.

 

     (d) Monitors pupil progress to inform instruction.

 

     (e) Uses data to make instructional decisions.

 

     (f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (g) Engages families and the community.

 

     (h) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

     (i) Implements instruction and intervention practices with

 

fidelity.

 

     (j) Uses a collaborative problem-solving model.

 

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

 

eligible district or eligible public school academy shall receive

 

under this section for each membership pupil in the district or

 

public school academy who is determined to be economically

 

disadvantaged, as reported to the center in the form and manner

 

prescribed by the center not later than the fifth Wednesday after

 

the pupil membership count day of the immediately preceding fiscal

 

year, an amount per pupil equal to 11.5% of the statewide weighted

average foundation allowance. However, a public school academy that

 

began operations as a public school academy after the pupil

 

membership count day of the immediately preceding school year shall

 

receive under this section for each membership pupil in the public

 

school academy, who is determined to be economically disadvantaged,

 

as reported to the center in the form and manner prescribed by the

 

center not later than the fifth Wednesday after the pupil

 

membership count day of the current fiscal year, an amount per

 

pupil equal to 11.5% of the statewide weighted average foundation

 

allowance.

 

     (5) Except as otherwise provided in this section, a district

 

or public school academy receiving funding under this section shall

 

use that money only to provide instructional programs and direct

 

noninstructional services, including, but not limited to, medical,

 

mental health, or counseling services, for at-risk pupils; for

 

school health clinics; and for the purposes of subsection (6), (7),

 

or (8). In addition, a district that is a school district of the

 

first class or a district or public school academy in which at

 

least 50% of the pupils in membership were determined to be

 

economically disadvantaged in the immediately preceding state

 

fiscal year, as determined and reported as described in subsection

 

(4), may use not more than 20% of the funds it receives under this

 

section for school security. A district or public school academy

 

shall not use any of that money for administrative costs. The

 

instruction or direct noninstructional services provided under this

 

section may be conducted before or after regular school hours or by

 

adding extra school days to the school year.

     (6) A district or public school academy that receives funds

 

under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a,

 

shall use from the funds received under this section an amount, not

 

to exceed $10.00 per pupil for whom the district or public school

 

academy receives funds under this section, necessary to pay for

 

costs associated with the operation of the school breakfast

 

program.

 

     (7) From the funds allocated under subsection (1), there is

 

allocated for 2017-2018 an amount not to exceed $6,057,300.00 to

 

support primary health care services provided to children and

 

adolescents up to age 21. These funds shall be expended in a form

 

and manner determined jointly by the department and the department

 

of health and human services. If any funds allocated under this

 

subsection are not used for the purposes of this subsection for the

 

fiscal year in which they are allocated, those unused funds shall

 

be used that fiscal year to avoid or minimize any proration that

 

would otherwise be required under subsection (14) for that fiscal

 

year.

 

     (8) From the funds allocated under subsection (1), there is

 

allocated for 2017-2018 an amount not to exceed $5,150,000.00 for

 

the state portion of the hearing and vision screenings as described

 

in section 9301 of the public health code, 1978 PA 368, MCL

 

333.9301. A local public health department shall pay at least 50%

 

of the total cost of the screenings. The frequency of the

 

screenings shall be as required under R 325.13091 to R 325.13096

 

and R 325.3271 to R 325.3276 of the Michigan Administrative Code.

Funds shall be awarded in a form and manner approved jointly by the

 

department and the department of health and human services.

 

Notwithstanding section 17b, payments to eligible entities under

 

this subsection shall be paid on a schedule determined by the

 

department.

 

     (9) Each district or public school academy receiving funds

 

under this section shall submit to the department by July 15 of

 

each fiscal year a report, in the form and manner prescribed by the

 

department, that includes a brief description of each program

 

conducted or services performed by the district or public school

 

academy using funds under this section, the amount of funds under

 

this section allocated to each of those programs or services, the

 

total number of at-risk pupils served by each of those programs or

 

services, and the data necessary for the department and the

 

department of health and human services to verify matching funds

 

for the temporary assistance for needy families program. In

 

prescribing the form and manner of the report, the department shall

 

ensure that districts are allowed to expend funds received under

 

this section on any activities that are permissible under this

 

section. If a district or public school academy does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy complies with this subsection. If the

 

district or public school academy does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds

 

shall be forfeited to the school aid fund.

 

     (10) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

 

the department's designee to audit all records related to the

 

program for which it receives those funds. The district or public

 

school academy shall reimburse the state for all disallowances

 

found in the audit.

 

     (11) Subject to subsections (6), (7), and (8), a district or

 

public school academy may use up to 100% of the funds it receives

 

under this section to implement schoolwide reform in schools with

 

40% or more of their pupils identified as at-risk pupils by

 

providing instructional or noninstructional services consistent

 

with the school improvement plan.

 

     (12) A district or public school academy that receives funds

 

under this section may use up to 3% of those funds to provide

 

research-based professional development to district and school

 

leadership and teachers that is aligned to professional learning

 

standards; is integrated into district, school building, and

 

classroom practices; and is solely related to the following:

 

     (a) Implementing the multi-tiered multitiered system of

 

supports required in subsection (3) with fidelity and utilizing the

 

data from that system to inform curriculum and instruction.

 

     (b) Implementing section 1280f of the revised school code, MCL

 

380.1280f, as required under subsection (3), with fidelity.

 

     (13) A district or public school academy that receives funds

 

under this section may use funds received under this section to

 

support instructional or behavioral coaches. Funds used for this

 

purpose are not subject to the cap under subsection (12).

 

     (14) If necessary, and before any proration required under

section 296, the department shall prorate payments under this

 

section by reducing the amount of the allocation as otherwise

 

calculated under this section by an equal percentage per district.

 

     (15) If a district is dissolved pursuant to section 12 of the

 

revised school code, MCL 380.12, the intermediate district to which

 

the dissolved school district was constituent shall determine the

 

estimated number of pupils that are economically disadvantaged and

 

that are enrolled in each of the other districts within the

 

intermediate district and provide that estimate to the department

 

for the purposes of distributing funds under this section within 60

 

days after the school district is declared dissolved.

 

     (16) Beginning in 2018-2019, if a district or public school

 

academy does not demonstrate to the satisfaction of the department

 

that at least 50% of at-risk pupils are proficient in English

 

language arts by the end of grade 3 as measured by the state

 

assessment for the immediately preceding school year and

 

demonstrate to the satisfaction of the department improvement over

 

each of the 3 immediately preceding school years in the percentage

 

of at-risk pupils that are career- and college-ready as determined

 

by proficiency on the English language arts, mathematics, and

 

science content area assessments on the grade 11 summative

 

assessment under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g, the district or public school academy shall ensure

 

all of the following:

 

     (a) The district or public school academy shall determine the

 

proportion of total at-risk pupils that represents the number of

 

pupils in grade 3 that are not proficient in English language arts

by the end of grade 3, and the district or public school academy

 

shall expend that same proportion multiplied by 1/2 of its total

 

at-risk funds under this section on tutoring and other methods of

 

improving grade 3 English language arts proficiency.

 

     (b) The district or public school academy shall determine the

 

proportion of total at-risk pupils that represent the number of

 

pupils in grade 11 that are not career- and college-ready as

 

measured by the student's score on the English language arts,

 

mathematics, and science content area assessments on the grade 11

 

summative assessment under section 1279g(2)(a) of the revised

 

school code, MCL 380.1279g, and the district or public school

 

academy shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (17) As used in subsection (16), "total at-risk pupils" means

 

the sum of the number of pupils in grade 3 that are not proficient

 

in English language arts by the end of third grade as measured on

 

the state assessment and the number of pupils in grade 11 that are

 

not career- and college-ready as measured by the student's score on

 

the English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g.

 

     (18) A district or public school academy that receives funds

 

under this section may use funds received under this section to

 

provide an anti-bullying or crisis intervention program.

 

     (19) The department shall collaborate with the department of

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not proficient in

 

English language arts, based upon state assessments for pupils in

 

those grades.

 

     (20) For the purpose of determining the number of economically

 

disadvantaged pupils enrolled in a community district for 2017-

 

2018, disadvantaged pupils who were enrolled in the education

 

achievement system for 2016-2017 shall be considered to have been

 

enrolled in the community district for 2016-2017.

 

     (21) As used in this section:

 

     (a) "At-risk pupil" means a pupil for whom the district has

 

documentation that the pupil meets any of the following criteria:

 

     (i) The pupil is economically disadvantaged.

 

     (ii) The pupil is an English language learner.

 

     (iii) The pupil is chronically absent as defined by and

 

reported to the center.

 

     (iv) The pupil is a victim of child abuse or neglect.

 

     (v) The pupil is a pregnant teenager or teenage parent.

 

     (vi) The pupil has a family history of school failure,

 

incarceration, or substance abuse.

 

     (vii) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (viii) The pupil did not complete high school in 4 years and

 

is still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (ix) For pupils for whom the results of the state summative

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

     (x) Is a pupil who is at risk of not meeting the district's or

 

public school academy's core academic curricular objectives in

 

English language arts or mathematics, as demonstrated on local

 

assessments.

 

     (b) "Economically disadvantaged" means a pupil who has been

 

determined eligible for free or reduced-price meals as determined

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769j; who is in a household receiving supplemental nutrition

 

assistance program or temporary assistance for needy families

 

assistance; or who is homeless, migrant, or in foster care, as

 

reported to the center.

 

     (c) "English language learner" means limited English

 

proficient pupils who speak a language other than English as their

 

primary language and have difficulty speaking, reading, writing, or

 

understanding English as reported to the center.

 

     (d) "Statewide weighted average foundation allowance" means

 

the number that is calculated by adding together the result of each

 

district's or public school academy's foundation allowance or per

 

pupil payment calculated under section 20 multiplied by the number

 

of pupils in membership in that district or public school academy,

 

and then dividing that total by the statewide number of pupils in

 

membership. For the purposes of this calculation, a district's

 

foundation allowance shall not exceed the basic foundation

 

allowance under section 20 for the current state fiscal year.

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.