Bill Text: MI HB6016 | 2015-2016 | 98th Legislature | Introduced
Bill Title: School aid; foundation allowance; per-pupil funding formula based on K-8 rate and 9-12 rate; provide for. Amends sec. 20 of 1979 PA 94 (MCL 388.1620).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-11-10 - Bill Electronically Reproduced 11/09/2016 [HB6016 Detail]
Download: Michigan-2015-HB6016-Introduced.html
HOUSE BILL No. 6016
November 9, 2016, Introduced by Rep. Irwin and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 20 (MCL 388.1620), as amended by 2016 PA 313.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20. (1) For 2016-2017, both of the following apply:
(a) The basic foundation allowance is $8,229.00.
(b) The minimum foundation allowance is $7,511.00.
(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 2016-
2017 in an amount equal to the basic foundation allowance for 2016-
2017.
(c) For a district that had a foundation allowance for the
immediately preceding state fiscal year that was greater than the
basic foundation allowance for the immediately preceding state
fiscal year, the district's foundation allowance is an amount equal
to the sum of the district's foundation allowance for the
immediately preceding state fiscal year plus the lesser of the
increase in the basic foundation allowance for the current state
fiscal year, as compared to the immediately preceding state fiscal
year, or the product of the district's foundation allowance for the
immediately preceding state fiscal year times the percentage
increase in the United States consumer price index in the calendar
year ending in the immediately preceding fiscal year as reported by
the May revenue estimating conference conducted under section 367b
of the management and budget act, 1984 PA 431, MCL 18.1367b.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(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. For pupils in membership, other than special
education pupils, in a public school academy that is a cyber school
and is authorized by a school district, the allocation calculated
under this section is an amount per membership pupil other than
special education pupils in the public school academy equal to the
foundation allowance of the district that authorized the public
school academy or the state maximum public school academy
allocation, whichever is less. However, a public school academy
that had an allocation under this subsection before 2009-2010 that
was equal to the sum of the local school operating revenue per
membership pupil other than special education pupils for the
district in which the public school academy is located and the
state portion of that district's foundation allowance shall not
have that allocation reduced as a result of the 2010 amendment to
this subsection. Notwithstanding section 101, for a public school
academy that begins operations after the pupil membership count
day, the amount per membership pupil calculated under this
subsection shall be adjusted by multiplying that amount per
membership pupil by the number of hours of pupil instruction
provided by the public school academy after it begins operations,
as determined by the department, divided by the minimum number of
hours of pupil instruction required under section 101(3). The
result of this calculation shall not exceed the amount per
membership pupil otherwise calculated under this subsection.
(7) Except as otherwise provided in this subsection, for
pupils attending an achievement school and in membership in the
education achievement system, other than special education pupils,
the allocation calculated under this section is an amount per
membership pupil other than special education pupils equal to the
foundation allowance of the district in which the achievement
school is located, not to exceed the basic foundation allowance.
Notwithstanding section 101, for an achievement school that begins
operation after the pupil membership count day, the amount per
membership pupil calculated under this subsection shall be adjusted
by multiplying that amount per membership pupil by the number of
hours of pupil instruction provided by the achievement school after
it begins operations, as determined by the department, divided by
the minimum number of hours of pupil instruction required under
section 101(3). The result of this calculation shall not exceed the
amount per membership pupil otherwise calculated under this
subsection. For the purposes of this subsection, if a public school
is transferred from a district to the state school reform/redesign
district or the achievement authority under section 1280c of the
revised school code, MCL 380.1280c, that public school is
considered to be an achievement school within the education
achievement system and not a school that is part of a district, and
a pupil attending that public school is considered to be in
membership in the education achievement system and not in
membership in the district that operated the school before the
transfer.
(8) 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.
(9) 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.
(10) Beginning in 2017-2018, the calculation under this
section used to determine the amount of state payments under
section 22b shall be adjusted as follows:
(a) The amount to be paid for each pupil in membership who is
enrolled in any of grades 9 to 12 shall be an amount equal to 1.3
times the amount of the foundation allowance or per-pupil
allocation as otherwise calculated under this section for the
district, public school academy, or education achievement system.
(b) The amount to be paid for each pupil in membership who is
enrolled in any of grades K to 8 shall be an amount equal to the
foundation allowance or per-pupil allocation as otherwise
calculated under this section for the district, public school
academy, or education achievement system.
(11) (10)
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.
(12) (11)
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.
(13) (12)
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.
(14) (13)
Payments to districts, public
school academies, or
the education achievement system shall not be made under this
section. Rather, the calculations under this section shall be used
to determine the amount of state payments under section 22b.
(15) (14)
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.
(16) (15)
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 2016-
2017, the maximum public school academy allocation is $7,511.00.
(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,
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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
