SCHOOL AID SECTION-BY-SECTION HIGHLIGHTS Fiscal Year … · House Fiscal Agency 1 5/9/2016 SCHOOL AID SECTION-BY-SECTION HIGHLIGHTS Fiscal Year 2016-17 House Bill 5291 (H-1) ... than

House Fiscal Agency 1 5/9/2016

SCHOOL AID SECTION-BY-SECTION HIGHLIGHTS

Fiscal Year 2016-17 House Bill 5291 (H-1)

Senate Bill 801 (S-1) as amended

Analysts: Bethany Wicksall Samuel Christensen

SECTION CURRENT LAW EXECUTIVE RECOMMENDATION

HOUSE Passed HB 5291 (H-1)

SENATE Passed SB 801 (S-1) CONFERENCE

Sec. 3 Definitions

No Change. No Change. (6) Adds a new definition for “community district” as defined under Part B of the Revised School Code, proposed in the Detroit Public Schools legislation.

Sec. 6 Pupil Membership Definitions

(4) Defines pupil membership and calculates a district's pupil membership blend equal to 90% of pupils counted on October count day plus 10% of pupils counted on the prior February count day.

(4) Revises pupil membership blend to 50% of pupils counted on October count day plus 50% of pupils counted on the prior February count day. (Includes $1,000,000 in Sec. 22a for this change.) Strikes district ability to revise membership based on pupil transfers between October and February counts under Sec. 25e (which would be repealed).

(4) Revises to 85% of the current October count plus 15% of the previous October count. (Includes $13,500,000 in Sec. 22a for this change.) Concurs with Executive

(4) Revises to 75% of pupils counted on October count day plus 50% of pupils counted on the prior February count day. (Includes $2,300,000 in Sec. 22a for this change.) Creates exception for a community district equal to 75% of October count plus 25% of prior February DPS count. Maintains current law.





Sec. 6 Pupil Membership Definitions (cont.)

(4)(l) (ii) Provides an exception for when a pupil may exceed the age of 20 and still be counted in membership if the pupil meets all the following: (A) Is enrolled in a PSA or alt. education high school primarily focused on educating homeless pupils. (B) Had dropped out for more than 1 year and reenters school. (C) Is less than 22 years old. (D) The pupil is considered homeless under the federal McKinney Homeless Assistance Act or was counted in membership under this subparagraph in 2014-2015. (4)(dd) Provides for membership calculation for pupils in a dropout recovery program under Section 23a.

(4)(l)(ii) Revises as follows: (A) No Change. (B) No Change. (C) No Change. (D) The pupil is considered homeless under the federal McKinney Homeless Assistance Act or was counted in membership under this subparagraph in 2014-2015. (4)(dd) Revises district reporting requirements to “not later than the tenth day of the next 30 DAYS AFTER THE END OF THE month.” (4)(gg) Caps the number for which a district may claim a nonpublic school pupil membership, for the purposes of receiving state aid, at no more than 1/3 of an FTE for grades 1 to 12 to align it with Sec. 166b, which requires that a nonpublic student be part-time and limited to nonessential elective courses.

(4)(l)(ii) Revises as follows: (A) No Change. (B) No Change. (C) No Change. (D) Concurs with Executive. (4)(dd) Concurs with Executive. (4)(gg) Not Included.

(4)(l)(ii) Revises as follows: (A) Revises to “primarily focused on educating pupils with extreme barriers to education such as being homeless…” (B) Revises to “had dropped out of school.” (C) No Change. (D) Deletes. (4)(dd) Concurs with Executive. (4)(gg) Concurs with Executive but revises the cap to 1/2 of an FTE. (Includes savings of $5,000,000 in Sec. 22a to reflect this change.)





Sec. 6 Pupil Membership Definitions (cont.)

(6) Defines “pupil” and establishes conditions under which a district can enroll a nonresident pupil without the resident district’s approval. Prohibits a district from establishing an instructional site within the boundaries of another district after 2009-2010 and counting the other district’s pupils without the approval of the resident district. (7) Defines “Pupil Membership Count Day” as first Wednesday in October with exceptions for year-round schools.

Not included. Not included. (6) No Change. (7) No Change.

(4) (gg) Adds if a special ed student is expelled at time of pupil count date but is reinstated after, the district may count the pupil in membership. Not included. (6) No Change. (7) No Change.

Not included. (4)(hh) Adds a pupil enrolled in a community district shall be counted in membership in the community district. (6) Revises as follows: Revises to create an exception for the Michigan Youth Challenge Program, operated by Marshall Public Schools, with an existing site in Battle Creek to allow for a new site. (7) Revises to create an exception for the Michigan Youth Challenge Program with a residential 11-month program and would make its count day the fourth Wednesday in August.





Sec. 11 Total Appropriations

FY 2015-16 Gross Appropriation: $13,900,654,300 School Aid Fund (SAF): $12,078,985,100 General Fund (GF/GP): $45,900,000 Federal Funds: $1,775,769,200

FY 2015-16 Supplemental Requests 2016-6 and 2016-7: Gross Appropriation: $13,846,208,500 School Aid Fund (SAF): $12,015,339,300 General Fund (GF/GP): $55,100,000 Federal Funds: $1,775,769,200 FY 2016-17 Gross Appropriation: $14,183,112,100 School Aid Fund (SAF): $12,062,479,300 Other State Restricted Funds: $72,000,100 General Fund (GF/GP): $230,000,000 Federal Funds: $1,818,632,700

FY 2015-16 Gross Appropriation: $13,836,208,500 School Aid Fund (SAF): $12,005,339,300 General Fund (GF/GP): $55,100,000 Federal Funds: $1,775,769,200 FY 2016-17 Gross Appropriation: $14,187,682,900 School Aid Fund (SAF): $12,076,050,000 Other State Restricted Funds: $72,000,100 General Fund (GF/GP): $221,000,100 Federal Funds: $1,818,632,700

FY 2015-16 Does not adjust FY 2015-16 in this bill. FY 2016-17 Gross Appropriation: $14,107,112,300 School Aid Fund (SAF): $12,062,479,500 Other State Restricted Funds: $100 General Fund (GF/GP): $226,000,000 Federal Funds: $1,818,632,700

Sec. 11j School Bond Redemption Fund

Appropriates $126,500,000 SAF for debt service in FY 2015-16 for the school bond loan program.

Supplemental Request 2016-5 reduces to $99,500,000 SAF for FY 2015-16 to reflect current costs estimates. Appropriates $126,500,000 SAF for FY 2016-17 to reflect the estimated increased cost of required debt service payments due to rising interest rates.

Reduces appropriation to $99,500,000 SAF for FY 2015-16. Appropriates $126,500,000 SAF for FY 2016-17.

FY 2015-16 adjustment not included. Appropriates $126,500,000 SAF for FY 2016-17.

Sec. 11m Cash-Flow Borrowing

Appropriates $2,000,000 SAF in FY 2015-16 to pay for costs associated with cash-flow borrowing related to the SAF.

Increases appropriation to $3,000,000 SAF for FY 2016-17 to recognize anticipated interest rate increases.

Increases appropriation to $3,000,000 SAF for FY 2016-17.






NEW Sec. 11o FY 2016 Flint Supplemental

Supplemental Request 2016-7 would appropriate $9,200,000 GF/GP for FY 2015-16 to provide universal Early On testing to identify and provide services to children 0-4 with potential developmental delays due to lead exposure.

Appropriates $9,200,000 GF/GP for FY 2015-16.

Not included.

NEW Sec. 11s Flint Emergency Declaration

(1) Increases total appropriation to $10,142,500 GF/GP and $100 Flint Emergency Reserve Funds for FY 2016-17. (2) Allocates $1,292,500 to Flint School District for additional school district nurses and social workers. (3) Allocates $950,000 to Genesee ISD to augment staff to provide additional early childhood services and nutrition services (4) Allocates $6,400,000 for Genesee ISD to provide Early On Services to all Flint resident children 0-3. (5) Allocates $1,500,000 to Genesee ISD to provide universal preschool for Flint resident children regardless of income. (6) In addition to (1), appropriates $15,000,000 in state restricted contingency funds, which are not available for expenditures until they have been transferred by the Legislature.

Appropriates $10,142,500 GF/GP and $100 Water Emergency Reserve funds for FY 2016-17. (2) Allocates $1,292,500 (3) Allocates $950,000 (4) Allocates $6,400,000 (5) Allocates $1,500,000 (6) In addition to (1), appropriates $15,000,000 in state restricted contingency funds.

Appropriates $10,142,500 GF/GP and $100 Water Emergency Reserve funds for FY 2016-17. (2) Allocates $1,292,500 (3) Allocates $950,000 (4) Allocates $6,400,000 (5) Allocates $1,500,000 (6) In addition to (1), appropriates $15,000,000 in state restricted contingency funds.





Sec. 15 State Aid Allocation Adjustments

Forgives the 2014-2015 repayment of a strict discipline academy that claimed a hardship because it was overpaid because it incorrectly calculated its pupil membership in 2013-2014.

Strikes the 2014-2015 strict disciplinary academy repayment forgiveness.

Concurs with Executive. Concurs with Executive.

Sec. 18 Spending, Financial Reporting, and Audit Requirements

Specifies allowable uses of funds and requires yearly financial and pupil audits. Also requires budget transparency information on district and intermediate district websites. (4) and (5) Requires that districts and ISDs provide all of their audited financial information by November 1. (10) Requires MDE to withhold next state aid payment if district does not comply with subsections (4)(5)(6) or (7).

Revises as follows: (5) Requires that financial data be consistent with a district’s or ISD’s audited financial statements. (10) Adds that MDE may withhold state aid if it determines the financial data is not consistent with audited financial statements.

Revises as follows: (5) Concurs with Executive. (10) Concurs with Executive.

Revises as follows: (5) Concurs with Executive. (10) Concurs with Executive.

Sec. 19 Reporting Requirements

Requires districts to comply with all state and federal reporting requirements (7) Provides legislative intent that by 2016-2017 MDE and CEPI implement statewide standard reporting requirements for education data.

Revises as follows: Deletes (7).

Revises as follows: Concurs with Executive.

Revises as follows: Requires implementation beginning in FY 2016-2017 for CEPI and MDE. Requires implementation for districts and ISDs beginning in FY 2017-2018 or whenever a district or ISD updates its education data reporting system, whichever is later.





Sec. 20 Foundation Allowance Calculation

Basic foundation allowance for FY 2015-16 is $8,169 and the Minimum foundation is $7,391.

Increases Basic foundation by $60 to $8,229 for FY 2016-17. However, an inflationary cap on Hold Harmless millages under MCL 380.1211 would restrict the growth in foundation allowances for Hold Harmless districts to 0.1%, or between $8 and $15 per pupil. (See Sec. 20j for a supplemental calculation that would allow Hold Harmless districts to get full $60 increase.) Increases the Minimum foundation by $120 to bring it to $7,511 for FY 2016-17 Total cost of the increase in Sections 22a and 22b is $150,000,000 offset by $126,700,000 in savings from decreasing pupils and increasing taxable values. Revises such that Sec. 20j per pupil calculations would be considered for pupils that participate in school choice and for the calculation of foundations in the case of district consolidation or annexation.

Concurs with Executive to increase Basic Foundation to $8,229. Concurs with Executive to increase Minimum Foundation to $7,511. Total cost of the increase in Sections 22a and 22b is $150,000,000 offset by $126,700,000 in savings from decreasing pupils and increasing taxable values. Concurs with Executive. (8) Not included.

Concurs with Executive to increase Basic Foundation to $8,229. Moves the Hold Harmless additional calculation from Sec. 20j to Sec. 20f(6). Concurs with Executive to increase Minimum Foundation to $7,511. Total cost of the increase in Sections 22a and 22b is $150,000,000 offset by $126,700,000 in savings from decreasing pupils and increasing taxable values. Revises Sec. 20j to Sec. 20f(6). (8) Adds that a community district would have a foundation allowance equal to the qualifying school district that it is replacing.





Sec. 20 Foundation Allowance Calculation (cont.)

(8) Provides that for a consolidation or annexation, the new district’s foundation allowance is the lesser of 1) the pupil-weighted average of the prior districts’ foundations plus $100, or 2) the highest of the prior districts’ foundations.

(8) No Change.

(8) No Change. (8) (9) Adds that for a district that gets a consolidation transition cost grant under Sec. 22g, and consolidates after June 1, 2016, for the first two years the district’s new foundation allowance would be the pupil-weighted average plus $300. (Estimated cost for Marshall/Albion $900,000.)

Sec. 20f Categorical Offset Payments

Appropriates $18,000,000 SAF for FY 2015-16 for the following two guarantees: (2) No district receives less than $5 increase in FY 2013-14 compared to FY 2012-13, when adding together the increases in the foundation allowances, equity payments and MPSERS offset reductions.

(4) No district receives less than a $25 increase in FY 2015-16 compared to FY 2014-15, when adding together the increases in the foundation allowances and at-risk funding and reductions in Best Practices and District Performance Grants.

Maintains appropriation of $18,000,000 SAF for FY 2016-17. Maintains payment allocation formula. Maintains payment allocation formula

Maintains appropriation of $18,000,000 SAF for FY 2016-17. Concurs with Executive. Concurs with Executive.

Increases appropriation to $27,000,000 SAF for FY 2016-17. Concurs with Executive. Concurs with Executive. (6) Adds subsection to supplement the foundation allowance calculation for Hold Harmless districts whose increases are otherwise capped by the rate of inflation. (Replaces the use of Section 20j). Estimated cost is $9,000,000.





Sec. 20g Dissolved District Transition Grant

Appropriates $2,200,000 SAF for FY 2015-16 for grants to districts that received portions of the dissolved districts of Buena Vista and Inkster.

Maintains appropriation of $2,200,000 SAF for FY 2016-17.


Maintains appropriation of $2,200,000 SAF for FY 2016-17. Adds legislative intent that $660,000 from the FY 2013-14 work project be used to pay off the former Buena Vista District because its nonhomestead school operating mills were rejected.

NEW Sec. 20j Additional Calculation for Hold Harmless Districts

Calculates per pupil allocations for Hold Harmless districts reflecting the difference between inflationary increases in foundation allowances (at which HH districts are capped under MCL 380.1211) and the $60 increase in the Basic foundation allowance provided under Section 20. (Includes $9,000,000 under Sec. 22b.)

Concurs with Executive. Not included. Moves to Section 20f(6).

NEW Sec. 21 State School Reform/ Redesign

Supplemental Request 2016-5 appropriates $1,000,000 SAF for FY 2015-16 to pay for CEO compensation. (1) Appropriates $5,000,000 SAF for FY 2016-17 for eligible districts with schools taken control of by the School Reform/Redesign Office (SRO). (2) Provides that districts are eligible for funding for 3 years if all of the following apply: (a) SRO appoints a CEP and district has a high school.

Does not include a FY 2015-16 appropriation for this section. (1) Appropriates $100 SAF. (2) Concurs with Executive.

Does not include a FY 2015-16 appropriation. (1) Appropriates $5,000,000 SAF. (2) Concurs with Executive but revises as follows:





NEW Sec. 21 State School Reform/ Redesign (cont.)

(b) District has an intervention agreement with the SRO. (c) District shall testify in person to School Aid subcommittees in House and Senate and provide quarterly reports on district use of additional funds. (3) Provides supplemental payments to districts equal to 20% of district’s foundation allowance for each pupil in high school. (4) Allocates from funds in (1) an amount sufficient to pay for the CEOs appointed by the SRO to take control of low performing schools.

(3) Concurs with Executive. (4) Concurs with Executive.

(d) Adds District is not operating under a local government option under the Local Financial Stability and Choice Act. (3) Concurs with Executive. (4) Concurs with Executive. (5) Requires a report to appropriation committees on the activities of the School Reform Office at least twice a year.

Sec. 21f Online VIRTUAL Courses

(1) Provides that pupils in grades 6 to 12 are eligible to enroll in online courses as provided in this section.

Reorganizes the section significantly with the following policy changes: (1) Provides that a district shall enroll an eligible pupil in accordance with provisions in this section. Deletes grade 6 to 12 requirement for eligibility but allows district to deny enrollment based on pupil being in grade K to 5 under (5)(a).

Concurs with Executive reorganization and revises policy as follows: (1) Concurs with Executive.

Concurs with Executive reorganization and revises policy as follows: (1) Concurs with Executive.





Sec. 21f Online Courses (cont.)

(2) Requires district to enroll a pupil in up to 2 online courses per term, with consent of parent or legal guardian. Allows pupils to take more than 2 online courses per term if demonstrated previous success and with school leadership and parental consent. (3) Provides that the course must be in either the district’s catalog of online courses or the statewide catalog of online courses maintained by Michigan Virtual University (MVU). (4) Allows online provider district or college to decide its capacity. If it has open capacity, a district must accept all nonresident, eligible students, and if the number of applicants exceeds capacity, requires use of a random draw to abide by nondiscrimination laws. (5) Allows educating district to prohibit enrollment in an online course under certain conditions.

(3)(c) If a pupil is enrolled in more than 2 virtual courses per term, requires primary district, in collaboration with the pupil, to develop an education development plan, in a form/manner specified by MDE, which is kept on file by the district.

(5) (e) (g) A district that disallows a course for insufficient quality or rigor, would have to “ENROLL” the pupil in an alternative course rather than “make a reasonable effort to assist” in finding an alternative course.

(5)(g) Strikes

provision allowing district to deny enrollment if request does not occur within same timelines established for enrollment and schedule changes for regular courses.

(3)(c) Concurs with Executive. (5)(g) Concurs with Executive. (5)(g) Concurs with Executive.

(3)(c) Concurs with Executive. (5)(g) Maintains current law but revises to add that the primary district will determine if the alternative course is of acceptable rigor and quality. (5) (g) (i) Maintains current law.






(6) Allows a pupil who is denied enrollment an appeal process. (7) Requires district, if offering an online course, to provide MVU with the course syllabus for inclusion in the statewide catalog and report to MVU number of enrollments and the number that earned 60% or more of total course points. District also must assign to each pupil a teacher of record and provide the primary district with the personal identification code for the teacher of record. (9) Adds that a primary district must assign to each pupil a mentor to monitor the pupil’s progress during the online course and supply the providing district with the mentor’s contact information. (8) Requires districts to use foundation allowance to pay for student's enrollment in online course if in the district or statewide catalog. Caps the amount a district must pay to no more than 6.67% of the Minimum foundation allowance. (13) Definitions

(6) Adds that if a district denies a pupil’s enrollment, the primary district shall provide written notification to the pupil including reason for denial and a description of the appeal process.

(7)(d) Exempts a course provider from having to put a course syllabus into the statewide catalog maintained by MVU unless the course is being offered to pupils in more than one district.

(8)(c) Deletes requirement that a community college offering a virtual course must ensure that it generates postsecondary credit.

(11) (10) Requires

MDE to establish standards for hardware, software, and internet access for pupils enrolled in more than 2 virtual courses per term taken at a location other than a school facility.

(6) Concurs with Executive. (7)(d) Concurs with Executive. (8)(c) Maintains current law. Not Included.

(6) Concurs with Executive. (7)(d) Concurs with Executive. (8)(c) Concurs with Executive. (11) (10) Concurs with Executive.






Requires the primary district to provide a pupil with the appropriate hardware, software, and internet access without charge to the pupil and in addition to paying the provider for the cost of the course.

(13) (12) Requires that MDE shall establish the minimum requirements to count a pupil in a virtual course in a district’s pupil membership.

(15) (13)(b) Revises such that a mentor may also act as teacher of record only if “THE PRIMARY DISTRICT IS THE PROVIDER FOR THE VIRTUAL COURSE”.

(15) (13)(e) Allows a

teacher of record to have either a valid Michigan teaching certificate “OR A TEACHING PERMIT RECOGNIZED BY” MDE.

Not Included. (13) Maintains current law. (15) (14)(b) Concurs with Executive. (15) (14)(e) Concurs with Executive.

Not Included. (13) (12) Concurs with Executive. (15) (14)(b) Concurs with Executive. (15) (14)(e) Concurs with Executive.





NEW Sec. 21g Competency Based Funding Pilot

Not included. Appropriates $1,000,000 GF/GP for FY 2016-17 to pilot a competency-based transcript and market place to establish an articulation framework for Michigan academic, technical, and global competencies and to establish assessment criteria for measuring these competencies and awarding universally recognized credentials.

Not included.

Sec. 22a Proposal A Obligation Payment (The Constitution-ally required part of the foundation)

FY 2015-16 appropriation of $5,281,700,000 SAF.

Supplemental Request 2016-5 reduces appropriation to $5,255,000,000 SAF for FY 2015-16 to reflect consensus cost adjustments. Reduces appropriation to $5,206,000,000 SAF for FY 2016-17 to reflect consensus cost estimates for taxable value increases and pupil decreases. Includes $1,000,000 for pupil membership blend changes under Sec. 6.

Reduces appropriation to $5,255,000,000 SAF for FY 2015-16. Reduces appropriation to $5,218,500,000 SAF for FY 2016-17. Includes $13,500,000 for pupil membership blend changes under Sec. 6.

Does not include FY 2015-16 adjustment. Reduces to $5,202,300,000 SAF for FY 2016-17. Includes $2,300,000 for pupil membership blend changes under Sec. 6. Reduces by $5,000,000 to recognize savings related to capping nonpublic shared-time FTEs.

Sec. 22b Foundation -Discretionary Payment (The discretionary portion of the foundation allowance.)

FY 2015-16 appropriation of $3,728,000,000 including $3,711,679,500 SAF and $16,320,500 GF/GP

Supplemental Request 2016-5 reduces appropriation to $3,690,000,000 ($3,673,679,500 SAF and $16,320,500 GF/GP) for FY 2015-16 to reflect consensus cost adjustments.

Reduces appropriation to $3,690,000,000 ($3,673,679,500 SAF and $16,320,500 GF/GP) for FY 2015-16.

Does not include FY 2015-16 adjustment.





Sec. 22b Foundation -Discretionary Payment (cont.)

Increases to $3,900,000,000 for FY 2016-17 to reflect cost estimates and the foundation allowance increases proposed under Sec. 20 and additional adjustments under Sec. 20j. Includes $72,000,000 to replace local funds for Detroit community district. Includes $3,709,138,200 SAF; $72,000,000 in DPS Trust Funds; and $190,861,800 in GF/GP.

Increases appropriation to $3,900,000,000 for FY 2016-17. Concurs with Executive. Includes $3,717,503,200 SAF; $72,000,000 in Community District Trust Funds; and $182,496,800 in GF/GP.

Reduces to $3,819,900,000 for FY 2016-17. Reduces by $9,000,000 compared to Executive and House to move Sec. 20j funding to Sec. 20f. Not included. Adds $900,000 for consolidation incentives. Includes $3,639,485,800 SAF; $180,414,200 GF/GP.

Sec. 22d Supplemental funding to Small, Isolated Districts

Appropriates $5,000,000 SAF for FY 2015-16. (2) $957,300 to small, isolated districts. (4) $4,042,700 to districts with 7.3 or fewer pupils per square mile.

Maintains appropriation at $5,000,000 SAF for FY 2016-17. (2) Maintains $957,300. (4) Maintains $4,042,700.



Sec. 22g Consolidation Innovation Grants

Appropriates $5,000,000 SAF for FY 2015-16 for competitive grants to districts and ISDs for transition costs associated with the annexation or consolidation of two or more districts or ISDs.

Maintains appropriation at $5,000,000 SAF for FY 2016-17. Expands to cover district dissolutions as well.

Maintains appropriation at $5,000,000 SAF for FY 2016-17. Concurs with Executive and expands to cover the consolidation of operations or services between districts and/or ISDs.

Increases appropriation to $6,500,000 SAF for FY 2016-17. (2) Allocates $1,000,000 for grants to districts or ISDs for feasibility studies to explore dissolution, consolidation, or annexation. (3) Allocates $3,000,000 for grants to districts or ISDs that meet any of the following:





Sec. 22g Consolidation Innovation Grants (cont.)

(a) Had a feasibility study that determined dissolution, consolidation, or annexation was in the districts’ best interest. (b) the State Treasurer declared the potential for fiscal stress exists under MCL 380.1219(3). (c) the State Treasurer determined that the district is subject to rapidly deteriorating financial circumstances and must submit an enhanced deficit elimination plan. (5) Allocates $2,500,000 for grants to districts that received a grant in FY 2015-16 for reimbursement of remaining transition costs.

Sec. 22i Technology Readiness Infrastructure Grants (TRIG)

(1) Appropriates $23,500,000 SAF for technology infrastructure, shared technology/data service consolidation, and hardware.

Eliminates funding and repeals this section.

Concurs with Executive.


Sec. 23a Dropout Recovery Programs

Allows a district with a dropout recovery program special pupil membership counting provisions under Section 6 if it meets criteria under this section.

Adds definition for “teacher of record” as a teacher with a valid Michigan teaching certificate, who if applicable, is endorsed in the subject area and grade of the course, and is responsible for providing instruction, diagnosing learning needs, assessing pupil learning, prescribing intervention strategies, reporting outcomes, and evaluating effects of instruction and support strategies.






Sec. 24 Court-Placed Pupils

Appropriates $8,000,000 SAF in FY 2015-16 to reimburse districts for added costs of educating court-placed pupils in a local juvenile detention facility institution.




Sec. 24a Educating Pupils in DHS Facilities

Appropriates $2,189,800 SAF for FY 2015-16 for payments to ISDs for pupils who are placed in Department of Health & Human Services (DHHS) juvenile justice facilities.

Reduces the appropriation to $1,301,000 SAF for FY 2015-16 to reflect lower caseloads due to the closure of a DHHS facility. Increases to $1,328,100 SAF for FY 2016-17 to reflect statewide negotiated salary and wage increases (1.0% ongoing, 1.5% lump sum), insurance rate increases, actuarially required retirement contributions, and other economic adjustments.

Reduces the appropriation to $1,301,000 SAF for FY 2015-16. Increases to $1,328,100 SAF for FY 2016-17.

Does not make FY 2015-16 adjustment. Increases to $1,328,100 SAF for FY 2016-17.

Sec. 24c Youth Challenge Program

Appropriates $1,497,400 SAF in FY 2015-16 for the Youth Challenge Program. Payment goes through Marshall Public Schools to the Department of Military and Veterans' Affairs for the program.

Increases the appropriation to $1,522,400 SAF for FY 2016-17 to reflect statewide negotiated salary and wage amounts (1.0% ongoing, 1.5% lump sum), insurance rate increases, actuarially required retirement contributions, and other economic adjustments.

Increases the appropriation to $1,522,400 SAF for FY 2016-17.

Increases the appropriation to $1,732,400 SAF for FY 2016-17 to include both economics as well as an additional $210,000 increase.

Sec. 25e Revised Pupil Transfer Process

If pupil transfers from another district after fall count day, allows the newly enrolling district to report the transfer until February count day so that the state aid would follow the student.

Eliminates the transfer process and repeals this section.

Concurs with Executive. Maintains current law.





Sec. 25f Strict Discipline Academy (SDA) Membership

Appropriates $1,000,000 SAF for FY 2015-16 for payments to strict discipline academies based on total added costs of educating SDA pupils. Caps added payment to amount equal to SDA’s foundation allowance.

Reduces appropriation to $250,000 SAF for FY 2016-17. Eliminates requirement to comply with Sec. 25e transfer process, which would be repealed.

Reduces appropriation to $250,000 SAF for FY 2016-17. Concurs with Executive.

Maintains appropriation of $1,000,000 for FY 2016-17. Maintains current law.

Sec. 25g Dropout Recovery Programs

Appropriates $1,000,000 SAF for FY 2015-16 to districts for the cost of dropout recovery programs.

Reduces appropriation to $250,000 SAF for FY 2016-17.

Reduces appropriation to $250,000 SAF for FY 2016-17.

Maintains appropriation of $1,000,000 for FY 2016-17.

Sec. 26a Renaissance Zone Reimburse-ment

Appropriates $26,300,000 SAF for FY 2015-16 to reimburse districts and ISDs for lost local revenue due to renaissance zones.

Supplemental Request 2016-5 reduces appropriation to $20,000,000 SAF for FY 2015-16 based on actual prior year reimbursement costs. Appropriates $20,000,000 SAF for FY 2016-17.


Does not make FY 2015-16 adjustment. Appropriates $20,000,000 SAF for FY 2016-17.

Sec. 26b PILT Reimburse-ment

Appropriates $4,276,800 SAF for FY 2015-16 to reimburse districts, intermediate districts, and community colleges for payment in lieu of taxes (PILT) obligations per PA 513 of 2004.

Increases appropriation to $4,405,100 SAF for FY 2016-17 to fully fund reimbursements.



Sec. 26c Promise Zones

Appropriates $310,000 SAF for FY 2015-16 to districts and ISDs with an approved promise zone development plan for the purposes of Promise Zone Authorities.

Supplemental Request 2016-5 reduces appropriation to $278,000 SAF for FY 2015-16 based on current cost estimates. Increases appropriation to $1,000,000 SAF for FY 2016-17 to reflect an additional zone reaching State Education Tax payment phase.

Reduces appropriation to $278,000 SAF for FY 2015-16. Increases appropriation to $1,000,000 SAF for FY 2016-17.

Does not make FY 2015-16 adjustment. Increases appropriation to $1,000,000 SAF for FY 2016-17.





Sec. 31a At-Risk Funding/ Adolescent Health Centers/ Hearing and Vision Screenings

(1) Appropriates $389,695,500 SAF in FY 2015-16 to districts for the purposes of ensuring pupils are proficient in reading by end of 3rd grade and that high school graduates are career and college ready. At-Risk program funding equals $378,988,200. (Total appropriation minus funds earmarked under (6) and (7) for other purposes.) (2) Prohibits districts whose combined state and local revenues per pupil, as calculated under Section 20, exceeds the Basic foundation allowance, $8,169. (3) Requires that to be eligible for funding districts must implement a multi-tiered system of supports model of instruction and intervention in at least grades K to 3. (4) Allocates funding based on 11.5% of a district’s foundation times the number of pupils qualifying for free breakfast, lunch, or milk in the preceding fiscal year. (5) Requires funding be used for instructional programs and direct non-instructional services. (6) Allows funds to be used for school breakfast.

(1) Maintains appropriation of $389,695,500 SAF for FY 2016-17. At-Risk program funding maintained at $378,988,200. (Total appropriation minus funds earmarked under (6) and (7) for other purposes.) (2) Revises to include a district’s Section 20j per pupil allocation when calculating combined state and local revenues. (3) No change. (4) Revises to include a district’s Section 20j per pupil allocation when calculating a district’s foundation allowance. (5) No Change. (6) No Change.

(1) Increases appropriation to $407,695,500 SAF for FY 2016-17. (2) Maintains allocation to $378,988,200 for currently eligible districts. (2) Strikes this provision, and adds partial funding under (19). (3) No change. (4) Concurs with Executive. (5) No Change. (6) No Change.

(1) Maintains appropriation of $389,695,500 SAF for FY 2016-17. Maintains allocation of $378,988,200. (2) Revises to include a district’s Section 20f(6) allocation when calculating combined state and local revenues. (3) No Change. (4) Revises to Section 20f(6). (5) No Change. (6) No Change.





Sec. 31a At-Risk Funding/ Adolescent Health Centers/ Hearing and Vision Screenings (cont.)

(7) Allocates $5,557,300 for school-based health centers. (8) Allocates $5,150,000 for hearing/vision screenings. (11) Allows district with 40% or more at-risk pupils to use funds for schoolwide reform. (12) Provides for proration if appropriated funds are not sufficient to fully fund calculated allocations. (14) Defines “at-risk pupil” (for provision of services, not for funding eligibility): (a) Victim of abuse or neglect. (b) Pregnant or teen parent. (c) Pupil with family history of school failure, incarceration, or substance abuse. (d) Pupil failed to achieve proficiency on state summative assessment. (e) Pupil not meeting objectives in ELA and Math on local assessments. (f) Pupil enrolled in a priority or priority-successor school. (h) In absence of local assessment data, pupil meets at least 2 of following: (i) Eligible for free or reduced breakfast, lunch, or milk. (ii) Absent more than 10% of enrolled days or more than 10 days during school year. (iii) Homeless. (iv) Migrant. (v) English language learner.

(7) Maintains total funding of $5,557,300. Rolls in $2,000,000 appropriated as one-time for 2015-16 into ongoing funds. (8) Maintains $5,150,000 for hearing/vision screenings. (11) No Change. (12) No Change. (14) No Change.

(7) Maintains total funding of $5,557,300 and concurs with Executive. (8) Maintains $5,150,000. (11) No Change. (12) Provides for separate prorations for districts receiving funding under subsections (2) and (19). (14) No Change.

(7) Maintains total funding of $5,557,300 and concurs with Executive. (8) Maintains $5,150,000. (11) No Change. (12) No Change. (14) No Change.





Sec. 31a At-Risk Funding/ Adolescent Health Centers/ Hearing and Vision Screenings (cont.)

(vi) Immigrant (vii) Did not complete high school in four years. (15) If at least 50% of at-risk pupils after 3 years are not reading at grade level by end of 3rd grade or are not demonstrating improvement on state summative assessment, requires district to use a portion of funds for improving reading and improving scores on state summative assessment. (17) Allows funds to be used for anti-bullying or crisis intervention. (18) Requires MDE work with DHHS to assign Pathways to Potential Success coaches to schools with high percentage of pupils in K to 3 not reading on grade level.

(15) Revises references to “reading at grade level” to “proficient in English language arts”. (17) No Change. (18) No Change.

(15) Concurs with Executive. (17) No Change. (18) No Change. (19) Allocates $18,000,000 to Hold Harmless and Out-of-Formula districts whose combined state and local revenues exceed the Basic foundation allowance.

(15) Concurs with Executive. (17) No Change. (18) No Change.

NEW Sec. 31b Year-round Instructional Program

Appropriates $3,500,000 for FY 2016-17. (2) To qualify: (a) The district must qualify for the community eligibility option for free and reduced lunch for 2016-2017. (b) The district school board has adopted a resolution that the district will implement for the first time a year-round instructional calendar beginning in 2017-2018 in at least 1 school for at least 3 years.

Not Included.





NEW Sec. 31b Year-round Instructional Program (cont.)

(3) Concurs with Executive. (4) Department shall award grants on a competitive basis but shall give priority based solely on consideration of: (a) Priority to districts with lower general fund balances as a percent of revenues. (b) Priority to districts that have at least 1 school identified as either a priority school or a focus school. (c) Ensuring that grant funding goes to both rural and urban districts. (5) Caps the maximum grant award at $750,000 per district. (6) Allows funding to be used for modifications to buildings and other nonrecurring costs.

Sec. 31c Gang Prevention/ Intervention

Appropriates $1,000,000 SAF for FY 2015-16 for grants to districts in partnerships with nonprofits, law enforcement, and other community groups to improve public safety, reduce youth gang-related activity, and increase high school graduation rates.




Sec. 31d School Lunch Program

Appropriates $22,495,100 SAF for FY 2015-16 for the State share of school lunch programs as required by Durant settlement. Includes $513,200,000 in Federal funding.

Maintains appropriation of $22,495,100 SAF for FY 2016-17. Maintains the Federal grant of $513,200,000.







Sec. 31f School Breakfast

Appropriates $5,625,000 SAF for FY 2015-16 to reimburse districts for the cost of providing breakfast.

Supplemental Request 2016-5 reduces the appropriation to $2,500,000 SAF for FY 2015-16 based on prior year actual costs. Appropriates $2,500,000 SAF for FY 2016-17.



Sec. 31h Cooperative Education Grant

Appropriates $300,000 SAF for FY 2015-16 for a district that educates high school students for a district that voluntarily closed its high school in 2013 (Marshall/Albion)


Concurs with Executive. Maintains appropriation of $300,000 for FY 2016-17 and specifies it is the 2nd of two years of funding.

NEW Sec. 31j Locally Grown Produce in Schools

Appropriates $500,000 GF/GP for a pilot project to support districts in the purchase of locally grown fruits and vegetables for use in school lunches. Distributed to districts in Prosperity regions 2 (Northwest), 4 (West Michigan), and 6 (East Michigan) at a reimbursement of 10 cents per meal. Priority to districts with high percentage of kids eligible for free lunch.





Sec. 32d Great Start Readiness Program (GSRP)

Appropriates $243,600,000 SAF for FY 2015-16 for GSRP preschool programs and $300,000 GF/GP to continue a longitudinal study of the GSRP. (5)(b) Requires that at least 90% of participating children live in families with income less than 250% of federal poverty level. Allows an ISD to serve children in families with income up to 300% of the federal poverty level, if they have served all eligible children and have no children with a family income less than 250% of the federal poverty level on a waiting list. Counts any child who is in foster care, homeless, or has an IEP requiring preschool as eligible regardless of income. (6) Allows programs providing school-day programs to count each child as 2 children for purposes of counting the number of children to be served and determining grant award. (9) Caps ISD administration expenses at 7% if providing direct services. If contracting, the ISD is capped at 4% and subrecipients at 4%.

Maintains appropriation of $243,600,000 SAF for programs and $300,000 GF/GP for the longitudinal study for FY 2016-17. Revises as follows: Prioritizes such children as if they were within the lowest income quintile. (6) Revises to move to Sec. 39, where the other formula determinations are made. (9) No Change.

Maintains appropriation of $243,600,000 SAF for programs and $300,000 GF/GP for the longitudinal study for FY 2016-17. Revises as follows: Concurs with Executive. (6) Concurs with Executive. (9) Caps ISD admin expenses at 5%. Eliminates the cap for subrecipient admin costs and counts them as contracted direct services.

Maintains appropriation of $243,600,000 SAF for programs and $300,000 GF/GP for the longitudinal study for FY 2016-17. Revises as follows: Concurs with Executive. (6) Concurs with Executive. (9) Caps ISD admin expenses at 4%. Eliminates the cap for subrecipient admin costs and counts them as program costs or contracted fee for service.





Sec. 32d Great Start Readiness Program (GSRP) (cont.)

(11) Requires each provider to rank children based on income and enroll children in the lowest quintile first before moving to the next quintile until all children are served. Counts any child who is in foster care, homeless, or has an IEP requiring preschool as eligible regardless of income. (12) Requires that an ISD must allow a parent to pick a GSRP program offered by another ISD and pay for it. (13) Requires an ISD to contract with interested and eligible public and private for-profit and nonprofit community-based providers for at least 30% of its total allocated slots. Requires ISDs to notify each licensed child care center located in its service area at least twice regarding the center’s eligibility to participate. Requires at least 1 notification be paid through US Postal mail and at least 1 be made with 7 days after ISDs receive their slot allocations from MDE> (14) Requires MDE to reduce ISD slot allocation if the ISD fails to submit evidence demonstrating its effort to contract for 30% of its slots.

(11) Revises as follows: Prioritizes such children as if they were within the lowest income quintile. (12) Revises to eliminate ISD payments to one another and replace it with written agreements in a manner described by MDE. (13) Revises as follows: Requires ISDs to notify each “nonparticipating” licensed child care center and strikes requirement that it happen twice. Eliminates both notification conditions and replaces with “as determined by MDE”. (14) No Change.

(11) Revises as follows: Concurs with Executive. (12) Concurs with Executive. (13) Revises as follows: Concurs with Executive. Concurs with Executive. (14) No Change.

(11) Revises as follows: Concurs with Executive. (12) Concurs with Executive. (13) Revises as follows: Allows a head start grantee or delegate in a blended Head Start GSRP program to count toward 30%. Excludes children in a pure Head Start program from counting toward 30%. Concurs with Executive. Concurs with Executive. (14) No Change.





Sec. 32d Great Start Readiness Program (GSRP) (cont.)

(15) Requires MDE to report to Legislature by November 1 on ISD use of community-based providers. (18) Requires ISDs to establish a tuition sliding scale for families with income greater than 250% of federal poverty level. (19) Allocates $10,000,000 for transportation costs no more than either a program’s transportation budget or $150 per half-day slot.

(15) Changes to December 1. (18) No Change. (19) No Change.



Sec. 32p Early Childhood Block Grants

(1) Appropriates $15,900,000 SAF for FY 2015-16 for early childhood funding block grants to ISDs. (2) Requires ISDs to convene great start collaboratives and parent coalitions with goal of ensuring coordination and expansion of local early childhood infrastructure to achieve the following outcomes for children: (a) Born healthy. (b) Healthy, thriving, and developmentally on track from birth to 3rd grade. (c) Developmentally ready to succeed upon school entry. (d) Reading proficiently by end of 3rd grade.

(1) Maintains appropriation of $15,900,000 SAF of FY 2016-17. (2) No Change.







Sec. 32p Early Childhood Block Grants (cont.)

(3) Collaborative shall make recommendations to ensure local systems support physical, and social-emotional health, family supports and basic needs, parent education, and early education and care. (4) Allocates $2,500,000 to provide home visits to at-risk children and their families. The goals of the home visits are to improve school readiness, reduce the number of pupils retained in grade level, and reduce the number of pupils requiring special education services. (5) Requires report of activities provided and number of families and children served and an evaluation of home visiting services provided by Dec. 1, with results compiled by MDE to the Legislature by Feb. 15.

(3) No Change. (4) Maintains $2,500,000 allocation for home visits. (5) No Change.

(3) No Change. (4) Maintains $2,500,000 allocation for home visits. (5) No Change.

(3) Adds a child’s vocabulary development. (4) Maintains $2,500,000 allocation and adds the following: Adds vocabulary development to program goals. Adds that coordination is intended to avoid duplication of state services and spending, and should emphasize efficient service delivery. (5) No Change.

NEW Sec. 32q Early Learning Collaborative Partnership

Adds $175,000 GF/GP for FY 2016-17 for a district partnering with an early childhood collaborative on a pilot program to evaluate the benefits of 2 years of preschool for vulnerable children. Intent that the funding would be the 1st of 3 years of funding.





Sec. 35 Early Literacy- Implementation

Appropriates $1,000,000 GF/GP for FY 2015-16 for implementing Sec. 35a to ensure children are reading on grade level by end of 3rd Grade. Allocates up to $100,000 to evaluate the parent university pilot under Sec. 35a(2).

Maintains $1,000,000 GF/GP for FY 2016-17 for implementing Sec. 35a. Eliminates allocation for pilot evaluation.

Maintains $1,000,000 GF/GP for FY 2016-17 for implementing Sec. 35a. Concurs with Executive.

Maintains $1,000,000 GF/GP for FY 2016-17 for implementing Sec. 35a. Concurs with Executive.

Sec. 35a Early Literacy–

Appropriates a total of $23,900,000 SAF and $1,500,000 GF/GP for FY 2015-16 for the following early literacy initiatives: (2) $1,000,000 SAF for a Parents University Pilot. (3) $950,000 SAF for professional development. 1st of 2 years of funding. (4) $1,450,000 SAF for diagnostic tools to monitor development of early literacy skills. 1st of 2 years of funding. (5) $3,000,000 SAF in matching grants for literacy coaches to assist teachers. (6) $17,500,000 SAF for added instructional time for pupils in grades K to 3. (7) $1,000,000 GF/GP for the Michigan Education Corps. (8) $500,000 GF/GP for a teacher certification test on literacy instruction.

Appropriates a total of $22,900,000 SAF for FY 2016-17. (2) Deleted (3) (2) Maintains $950,000 SAF as 2nd of 2 years of funding. (4) (3) Maintains $1,450,000 SAF as 2nd of 2 years of funding. (5) (4) Maintains $3,000,000 SAF. (6) (5) Maintains $17,500,000 SAF. (7) Deleted (8) Deleted

Appropriates a total of $22,900,000 SAF for FY 2016-17. (2) Concurs with Executive. (3) (2) Maintains $950,000 SAF as 2nd of 2 years of funding. (4) (3) Maintains $1,450,000 SAF as 2nd of 2 years of funding. (5) (4) Maintains $3,000,000 SAF. (6) (5) Maintains $17,500,000 SAF. (7) Concurs with Executive. (8) Concurs with Executive.

Appropriates a total of $22,900,000 SAF and $1,000,000 GF/GP for FY 2016-17. (2) Concurs with Executive. (3) (2) Maintains $950,000 SAF as 2nd of 2 years of funding. (4) (3) Maintains $1,450,000 SAF as 2nd of 2 years of funding. (5) (4) Maintains $3,000,000 SAF. (6) (5) Maintains $17,500,000 SAF. (7) Maintains $1,000,000 GF/GP. (8) Maintains current year language and adds that FY 2015-16 funds may be carried forward as a work project into FY 2016-17.





Sec. 39 GSRP Per Pupil Allocation Formula

Provides for the GSRP application process and slot allocation formulas. Per pupil allocation for GSRP half-day slot is $3,625.

Revises application and formula to base it on number of slots filled rather than children served so that the hold harmless provision also includes slots used to provide full-day programs. Deletes priority given to programs offering supplemental childcare over and above a school day.

Concurs with Executive with technical revisions. Concurs with Executive.

Concurs with Executive with technical revisions. Concurs with Executive.

Sec. 39a Federal Funds

(1) Appropriates $779,076,400 for FY 2015-16 in Federal No Child Left Behind (NCLB) funds including the following: (a) $5,000,000 in Drug-Free schools and Communities funds. (b) $111,111,900 in Improving Teacher Quality funds. (c) $12,200,000 in Language Acquisition funds. (d) $10,286,500 in Charter School funds. (e) $3,000,000 in Rural and Low Income School funds. (f) $565,000,000 in Title I, Disadvantaged Children funds. (g) $8,878,000 in Migrant Education funds. (h) $39,000,000 in 21st Century Community Learning Center funds. (i) $24,600,000 in Title I, School Improvement Grants.

(1) Increases Federal grants to $821,939,900 for NCLB funds or the Every Student Succeeds Act (ESSA) for FY 2016-17 (a) Decreases to $2,000,000. (b) No Change. (c) No Change. (d) Reduces to $250,000. (e) No Change. (f) No Change. (g) No Change. (h) No Change. (i) No Change. (j) Adds $55,900,000 in Student Support and Academic Enrichment Grants.







Sec. 39a Federal Funds (cont.)

(2) Appropriates $30,800,000 in other Federal funds for education including the following: (a) $200,000 in CDC-AIDS education grants. (b) $2,600,000 in Homeless Children and Youth funds. (c) $4,000,000 for mental health, substance abuse, or violence prevention services. (d) $24,000,000 in Career &Technical Education funds.

(2) Maintains $30,800,000 for other Federal funds for education for FY 2016-17. (a) No Change. (b) No Change. (c) No Change. (d) No Change.

(2) Maintains $30,800,000 for other Federal funds for education for FY 2016-17. (a) No Change. (b) No Change. (c) No Change. (d) No Change.

(2) Maintains $30,800,000 for other Federal funds for education for FY 2016-17. (a) No Change. (b) No Change. (c) No Change. (d) No Change. (5) Adds that for the purposes of funding Title I grants, MDE shall allocate an amount of Title I, Part A funds to a strict discipline academy equal to what it would have received if it were included under Part D or what it would receive under Part A, whichever is greater.

Sec. 41 Bilingual Education

Appropriates $1,200,000 for FY 2015-16 for instruction to pupils with limited English-speaking ability.




Sec. 43 Teacher Certification Tests Update

Appropriates $1,800,000 GF/GP for FY 2015-16 to update teacher certification tests by September 30, 2016.



Sec. 51a (1) Total Special Education Funding

(1) Appropriates a total of $918,546,100 SAF and $370,000,000 Federal funding for FY 2015-16. Allocations of the total are below in Sec. 51a (2)(3)(6)(11), Sec. 51c, Sec. 53a, Sec. 54, and Sec. 56

(1) Supplemental Request 2016-5 revises appropriation for FY 2015-16 to $947,246,100 SAF and $370,000,000 Federal funding based on consensus cost revisions.

1) Supplemental Request 2016-5 revises appropriation for FY 2015-16 to $947,246,100 SAF and $370,000,000 Federal funding based on consensus cost revisions.

1) Does not include FY 2015-16 adjustments.





(2) Special Ed -ISD Foundations and Costs (3) Special Ed -ISD Hold Harmless Payments (6) Special Ed Administrative Rule Changes (7)(c) Itinerant Staffing (11) Special Ed - ISD Foundations for Non Sec. 52

(2) Allocates $251,800,000 for FY 2015-16. (3) Allocates $1,300,000 for FY 2015-16. (6) Allocates $2,200,000 for FY 2015-16. (7)(c) Allows unspent Sec. 51a funds at end of fiscal year to be allocated as additional reimbursements to ISDs based on the transfer of special education staff under certain situations since 2003-2004. Caps an individual ISD’s allocation at no more than $2,000,000. (11) Allocates $3,300,000 for FY 2015-16. (15) Provides intent that a penalty of 10% of state aid for a district or ISD that does not comply with this section or federal regulations regarding provision of special education would begin in 2016-2017.

Appropriates $973,046,100 SAF and $370,000,000 federal for FY 2016-17. (2) Increases allocation to $264,100,000 for FY 2015-16 and to $271,600,000 for FY 2016-17. (3) Decreases allocation to $1,000,000 for FY 2015-16 and increases to $1,100,000 for FY 2016-17. (6) Maintains allocation at $2,200,000 for FY 2015-16 and FY 2016-17. (7)(c) No Change. (11) Increases allocation to $4,000,000 for FY 2015-16 and reduces to $3,700,000 for FY 2016-17. (15) Deletes.

Appropriates $973,046,100 SAF and $370,000,000 federal for FY 2016-17. (2) Increases allocation to $264,100,000 for FY 2015-16 and to $271,600,000 for FY 2016-17. (3) Decreases allocation to $1,000,000 for FY 2015-16 and increases to $1,100,000 for FY 2016-17. (6) Maintains allocation at $2,200,000 for FY 2015-16 and FY 2016-17. (7)(c) No Change. (11) Increases allocation to $4,000,000 for FY 2015-16 and reduces to $3,700,000 for FY 2016-17. (15) Provides for a 10% penalty beginning in FY 2016-17.

Appropriates $973,046,100 SAF and $370,000,000 federal for FY 2016-17. (2) Does not include FY 2015-16. Increases allocation to $271,600,000 for FY 2016-17. (3) Does not include FY 2015-16. Decreases allocation to $1,100,000 for FY 2016-17. (6) Does not include FY 2015-16. Maintains allocation at $2,200,000 for FY 2016-17. (7)(c) No Change. (11) Does not include FY 2015-16. Increases allocation to $3,700,000 for FY 2016-17. (15) Provides for a 10% penalty beginning in FY 2016-17.





Sec. 51c Special Ed -Durant Payment

Allocates $610,000,000 from the appropriation in Sec. 51a(1) for FY 2015-16 to provide funding for costs associated with Durant settlement that guarantees districts 28.6138% of total approved costs of special education services and 70.4164% of total approved costs of special education transportation.

Increases the FY 2015-16 allocation to $626,000,000 and increases to $644,500,000 for FY 2016-17.

Increases the FY 2015-16 allocation to $626,000,000 and increases to $644,500,000 for FY 2016-17.

Does not include FY 2015-16. Increases to $644,500,000 for FY 2016-17.

Sec. 51d Other Federal Special Education

Appropriates $71,000,000 in other Federal special education grants for FY 2015-16.

Maintains the appropriation of $71,000,000 for FY 2016-17.



Sec. 53a Special Ed - Court Placed Pupils

Allocates $10,500,000 from the appropriation in Sec. 51a(1) for FY 2015-16.

Maintains the $10,500,000 allocation for FY 2016-17.



Sec. 54 Special Ed -Schools for the Deaf and Blind

Allocates $1,688,000 from the appropriation in Sec. 51a(1) for FY 2015-16.




NEW Sec. 54b Special Ed – Task Force Reforms

(1) Appropriates a total of $1,370,000 GF/GP for FY 2016-17 to implement Special Ed Task Force Recommendations. (2) Allocates $750,000 for pilot of Michigan Integrated Behavior and Learning Support Initiative (MiBLSI) including at least 3 ISDs. (3) Allocates $620,000 for providing training in districts and ISDs related to the safe implementation of emergency restraints and seclusion. Training program to be developed by MDE.

(1) Appropriates a total of $1,370,000 GF/GP for FY 2016-17. (2) Allocates $750,000. (3) Allocates $620,000.

(1) Appropriates a total of $1,370,000 GF/GP for FY 2016-17. (2) Allocates $750,000. (3) Allocates $620,000.





Sec. 55 Conductive Learning

Appropriates $150,000 SAF for FY 2015-16 to MSU Department of Epidemiology in conjunction with Aquinas College to evaluate conductive learning for children with cerebral palsy. 1st of 2 years of funding.

Maintains appropriation of $150,000 SAF for FY 2016-17 for the 2nd of 2 years of funding.



Sec. 56 Special Education -Millage Equalization

(2) Allocates $37,758,100 from Sec. 51a(1) for FY 2015-16. Funding for ISDs to guarantee a minimum level of revenue per pupil for each special education mill levied. (3) Per-pupil equalization amount equal to $174,400. (4) Caps maximum ISD allocation at 62.9% of the total appropriation. (5) Provides that no ISD shall receive less than 75% of its prior year allocation.

(2) Maintains the $37,758,100 allocation for FY 2016-17. (3) Per-pupil equalization amount equal to $179,100. (4) No Change. (5) No Change.



NEW Sec. 59 Gifted and Talented

Adds $100 for FY 2016-17 for payments to intermediate districts for gifted and talented programs.

Sec. 61a Career and Technical Education (CTE)

(1) Appropriates $36,611,300 SAF for FY 2015-16 for reimbursements to districts and intermediate districts for vocational education programs.

(1) Maintains appropriation of $36,611,300 SAF for FY 2016-17.







Sec. 61a Career and Technical Education (CTE) (cont.)

Reimburses districts for up to 75% of added costs prioritized on: - Capital and program

expenditures needed to operate the program

- Number of pupils enrolled.- The advancement of

pupils through the instructional program.

- The existence of an articulation agreement with at least 1 postsecondary institution for transfer of credit.

- Program rank in student placement.

- Program rank in job openings and wages.

- Length of training provided.

Revises as follows: Deletes.

Revises as follows: Concurs with Executive. (4) In addition to (1), appropriates $115,000 GF/GP to a non-profit organization that provides curriculum and training to CTE programs in restaurant management and culinary arts.

Revises as follows: Concurs with Executive. (4) Not included. (Included in Sec. 61e).

Sec. 61b CTE Education Early/Middle Colleges

(1) Appropriates $10,000,000 SAF for CTE early middle colleges. (2) Funding for ISDs in 10 prosperity regions and subregions. Caps administrative costs at 5%.

(1) Increases appropriation to $15,000,000 SAF for CTE early middle colleges. (2) No Change.

(1) Increases appropriation to $15,000,000 SAF for FY 2016-17. (2) No Change.

(1) Maintains appropriation of $10,000,000 SAF for FY 2016-17. Adds to the purpose of the funding “to support the planning, development, and expansion of CTE early/middle college programs”. (2) No Change.





Sec. 61b CTE Education Early/Middle Colleges (cont.)

(4) Provides requirements for regional plan and ranking of career clusters. (6) Funding equal to 50% of statewide average CTE cost by career cluster per FTE. (8) Allows funds to pay for expenditures that would be paid from foundation allowance funding. Caps administrative funds at 5%.

(4) Revises to require a talent district career council to document and deem accurate a review of the rankings. (6) Revises per FTE to per pupil. (8) Revises to allow a program that receives funding under Section 61a to receive funding under this section for allowable costs that exceed the reimbursement under Section 61a, as long as combined payments from 61a and 61b do not exceed the total allowable costs of the program.

(4) Concurs with Executive. (6) Concurs with Executive. (8) Allows up to $500,000 from funds appropriated in (1) to be used for planning new or expanded programs. Caps grants to $50,000 per program. (8) (9) Concurs with Executive.

(4) Adds a new subsection to establish the conditions for eligibility for a planning, development, or expansion grant. (4)(5) Concurs with Executive. (6) (7) Concurs with Executive. (8) Allocates remaining funds after calculated payments to existing programs per (7) on a per pupil basis for each pupil that would be eligible for the new program in grades 9-12. (9) Provides that funding for planning, development, and expansion grant shall be for a period of 4 years. Allocations the first two years shall be 100% of amount determined by MDE. Grants for each subsequent year shall equal 50% of the prior year amount. (8) (11) Concurs with Executive.





NEW Sec. 61c CTE Equipment Upgrades

(1) Appropriates $10,000,000 SAF for FY 2016-17 to districts or intermediate districts for CTE infrastructure investments. (2) Requires MDE to develop criteria for a competitive grant program. (3) Grant awards capped at $500,000. (4) Eligible costs include equipment, renovations related to installation, installation, and training for instructors that will be provide instruction using the equipment.

(1) Appropriates $10,000,000 SAF for FY 2016-17 and concurs with Executive on purpose. (2) Concurs with Executive. (3) Concurs with Executive. (4) Concurs with Executive.

(1) Appropriates $10,000,000 GF/GP for FY 2016-17 for grants to cooperating education policy districts (CEPDs) for a skilled trades initiative. (2) Allocates funds equally among all applying CEPDs. (3) Requires that funding shall be used to update CTE equipment in current CTE programs driving economic development in their individual communities to build a more qualified workforce. (4) Award allocations locally shall be determined by CEPD administrators using state, regional, and local data to ensure programs are high-wage, high-skill, and high-demand occupations. (5) Requires annual report on purchased equipment by September 15.

NEW Sec. 61d Educational Pipeline Grant

Adds $500,000 GF/GP for a competitive grant program to create a seamless educational and career pathway and pipeline from kindergarten through college. Gives priority for a community with a water emergency.





NEW Sec. 61e Culinary Arts CTE Program

Adds $100,000 GF/GP to an eligible nonprofit for curriculum and training for a CTE program in restaurant management and culinary arts.

Sec. 62 CTE/ Vocational Education Millage Equalization

(2) Appropriates $9,190,000 SAF for FY 2015-16. Funding for ISDs to guarantee a minimum level of revenue per pupil for each special education mill levied. (3) Per-pupil equalization amount equal to $189,400. (4) Caps maximum ISD allocation at 38.4% of the total appropriation. (5) Provides that no ISD shall receive less than 75% of its prior year allocation.

(2) Maintains appropriation of $9,190,000 SAF for FY 2016-17. (3) Per-pupil equalization amount equal to $196,100. (4) No Change. (5) No Change.



NEW Sec. 63 CTE (ISD/Health Dept.) Partnership

Adds $500,000 SAF for FY 2016-17 to an ISD for a joint capital project with a local health department for a new building connected to the ISD CTE center.

Sec. 64b Dual Enrollment Incentive Payments

(1) Appropriates $1,750,000 SAF for FY 2015-16 in payments to districts that provide dual and concurrent enrollment options to students in grades 9-12. (3) Provides requirements for eligibility.

(1) Maintains appropriation of $1,750,000 SAF for FY 2016-17. (3) Changes eligibility from awarding college credit at “any” to “a” community college or university.

(1) Maintains appropriation of $1,750,000 SAF for FY 2016-17. (3) Concurs with Executive.

(1) Maintains appropriation of $1,750,000 SAF for FY 2016-17. (3) Concurs with Executive.





Sec. 64b Dual Enrollment Incentive Payments (cont.)

(4) Payments equal to $10 per credit hour for up to 3 credits for each student enrolled plus $30 per pupil per course, if the pupil successfully completes and is awarded both high school and post-secondary credit for the course.

(4) No Change. (4) No Change. (4) No Change.

Sec. 65 Detroit Area PreCollege Engineering Program

Appropriates $340,000 GF/GP for FY 2015-2016 for the Detroit Area PreCollege Engineering Program (DAPCEP).

Maintains appropriation of $340,000 GF/GP for FY 2016-17.



Sec. 67 College and Career Preparation

(1) Appropriates $3,600,000 GF/GP for FY 2015-16 for programs to inform students of college and career options and provide resources to prepare students to make informed college and career decisions. (2) Allocates $3,000,000 to the College Access Program administered by the Talent and Economic Development Department (TED) in collaboration with the Michigan College Access Network (MCAN). (3) Allocates up to $600,000 administered by TED in collaboration with MCAN and MVU to provide students, parents, and educators information on dual enrollment and opportunities to earn postsecondary credits, technical certifications, and registered apprenticeships and an online career planning tool.

(1) Decreases appropriation to $3,050,000 GF/GP for FY 2016-17. (2) Allocates $3,000,000. (3) Decreases allocation to $50,000 and deletes the online career planning tool.







Sec. 74 Bus Driver Safety and School Bus Inspections

Appropriates $3,315,700 SAF for FY 2015-16. (2) Allocates $1,625,000 for bus driver safety instruction. (4) Allocates $1,690,700 to reimburse Michigan State Police for school bus inspections.

Increases FY 2016-17 total appropriation to $3,320,600 SAF. (2) Maintains funding at $1,625,000. (4) Increases to $1,695,600 to reflect statewide negotiated salary and wage amounts (2.5%), insurance increases, actuarially required retirement contributions, and other economic adjustments.

Increases FY 2016-17 total appropriation to $3,320,600 SAF. (2) Maintains funding at $1,625,000. (4) Increases to $1,695,600.

Increases FY 2016-17 total appropriation to $3,320,600 SAF. (2) Maintains funding at $1,625,000. (4) Increases to $1,695,600.

NEW Sec. 78 Statewide School Water Testing

Supplemental Request 2016-5 appropriates $9,000,000 SAF for FY 2015-16 for 1st of 3 years of funding. (1) Appropriates $9,000,000 SAF for FY 2016-17 for 2nd of 3 years of funding. (2) Requires MDE in collaboration with DEQ and LARA to develop strategic statewide plan to prioritize facilities, to identify proper sampling and analysis protocols for measuring lead in water, and to develop measures for reducing lead exposure. (4) Requires MDE to report to Governor and Legislature on number of fixtures tested, including the numbers with elevated lead levels, as well as measures implemented to reduce lead, and financial data for district reimbursement.

Not Included. Not Included.





Sec. 81 Intermediate School Districts (ISD) General Operations Funding

Appropriates $67,108,000 SAF for FY 2015-16 for basic operational funding of intermediate districts.

Increases appropriation to $68,182,000 SAF for FY 2016-17. Provides each ISD with a 1.6% increase compared to its FY 2015-16 allocation.



Sec. 94 Advanced Placement Incentive Program

Appropriates $250,000 for FY 2015-16 to districts to pay for some or all of Advanced Placement (AP) and International Baccalaureate (IB) test fees for low-income students. Payments estimated at $20 per test. Requires that a student pay at least $5.00 toward each test.

Maintains $250,000 GF/GP appropriation for FY 2016-17. Revises to also allow reimbursement for IB registration fees of up to $150.

Maintains $250,000 GF/GP appropriation for FY 2016-17. Concurs with Executive.

Maintains $250,000 GF/GP appropriation for FY 2016-17. Concurs with Executive.

Sec. 94a Center for Educational Performance and Information (CEPI)

Appropriates $11,967,000 GF/GP in FY 2015-16 to support the operations of the CEPI, which is in the Department of Technology, Management, and Budget (DTMB), and for the comprehensive data management and student tracking system. Appropriates $193,500 in FY 2015-16 from Federal funds.

Increases appropriation to $12,173,200 GF/GP for FY 2016-17 to reflect statewide negotiated salary and wage amounts (2.5%), insurance rate increases, actuarially required retirement contributions, and other economic adjustments. Appropriates $193,500 in Federal funds for FY 2016-17.

Increases appropriation to $12,173,200 GF/GP for FY 2016-17. Appropriates $193,500 in Federal funds for FY 2016-17.

Increases appropriation to $12,173,200 GF/GP for FY 2016-17. Appropriates $193,500 in Federal funds for FY 2016-17.

Sec. 95a Educator and Administrator Evaluations

Appropriates $0 into the Educator Evaluation Reserve Fund (6) Requires MDE to submit a spending plan to the State Budget Office before spending funds.

Appropriates $10,000,000 SAF into the fund for FY 2016-17 for implementing educator evaluation systems. (6) Deletes.

Not Included. Appropriates $100 SAF for FY 2016-17 and concurs with Executive changes.





NEW Sec. 95b State Student Growth Tool

Appropriates $100 for FY 2016-17 for a statewide student growth tool based on state assessments.

Sec. 98 Michigan Virtual University (MVU)

Appropriates $7,387,500 GF/GP to MVU in FY 2015 -16. (2) Requires Michigan Virtual Learning Research Institute with following objectives: (a) Support and accelerate innovation in education through specified activities. (b) Provide leadership for the state’s system of digital learning education through specified activities. (3) Requires that to further enhance its expertise and leadership in digital learning, the MVU shall continue to operate the Michigan Virtual School as a statewide laboratory and quality model of instruction by implementing online and blended learning as follows:

Maintains the appropriation of $7,387,500 GF/GP for FY 2016-17. Revises “online” to “virtual” throughout the section.

Maintains the appropriation of $7,387,500 GF/GP for FY 2016-17. Concurs with Executive.

Reduces appropriation to $7,000,000 GF/GP for FY 2016-17. Adds requirement, that MVU report by Nov. 1, 2016 on its mission, its plans, and proposed benchmarks it must meet, including a plan to increase by 50% improvement for each requirement under this section in order to receive full funding for FY 2017-18. Requires progress report by March 1, 2017. Concurs with Executive with the following changes: (a) (v) Expands professional development requirements from 500 educators to 30,000 and requires coordination with Math/Science Centers.





Sec. 98 Michigan Virtual University (MVU) (cont.)

(a) Michigan Virtual School must maintain its accreditation status. (b) MVU shall use no more than $1,000,000 of its total appropriation to subsidize the cost paid by districts for online courses. (c) Michigan Virtual School shall work with Michigan State Police to provide criminal history and records checks for all online educators as if it were a public school.

(9) Changes definition of online, now virtual course to a course of study capable of generating a credit or grade provide in an interactive learning environment, in which the majority of the curriculum is delivered via internet and in which pupils are separated from their instructor or teacher of record by time or location. Eliminates requirement that a teacher must have a valid Michigan teaching certificate.

(9) Concurs with Executive.

(9) Concurs with Executive.

Sec. 99c Civics Education

Appropriates $60,000 GF/GP for a grant to a provider of civic education.

Eliminates funding and repeals section.


Maintains appropriation of $60,000 GF/GP for FY 2016-17. Requires award be granted by Dec. 1, 2016.

Sec. 99h FIRST Robotics

Appropriates $2,000,000 SAF for FY 2015-16 to districts for grants for FIRST Robotics programs grades 7-12. Funds may be used for stipends for coaches and expenses.








Sec. 99s Michigan Science, Technology, Engineering, and Mathematics (MiSTEM) Grants

(1) Appropriates a total of $9,274,300 including $3,250,000 SAF, $775,000 GF/GP, and $5,249,300 Federal for MiSTEM programs: (2) $50,000 GF/GP allocated to the MiSTEM Council to administer MiSTEM grants. (3) $2,750,000 SAF and $5,249,300 Federal to Math/Science Centers. (4) $375,000 SAF and $100,000 GF/GP to the Michigan STEM Partnership. (5) $250,000 SAF to districts to support STEM teacher professional development. (6) $250,000 SAF to districts for Science Olympiad teams.

(1) Increases total appropriation to $10,524,300 including $2,750,000 SAF, $2,525,000 GF/GP, and $5,249,300 Federal. (2) Maintains $50,000 GF/GP for administration and includes $2,475,000 GF/GP for grants based on council recommendations. If council doesn’t make recommendations by March 1, 2016, allows MDE to award grants up to $250,000 on a competitive basis. (3) Maintains $2,750,000 SAF and $5,249,300 Federal to Math/Science Centers. (4) Deletes. (5) Deletes. (6) Deletes.

(1) Maintains appropriation of $9,274,300 including $2,750,000 SAF, $2,525,000 GF/GP, and $5,249,300 Federal. (2) Allocates $50,000 GF/GP allocated to the MiSTEM Council to administer MiSTEM grants. (3) Allocates 2,750,000 SAF and $5,249,300 Federal to 10 MiSTEM Centers in each prosperity region (with an ISD fiscal agent for each). MiSTEM Centers would coordinate with the MiSTEM Council and Change the Equation STEMworks. Half of the funding would have to be distributed to districts for participation in eligible STEM programs. (4) Allocates $375,000 SAF and $100,000 GF/GP to the Michigan STEM Partnership. (5) Allocates $250,000 SAF to districts to support STEM teacher professional development. (6) Allocates $250,000 SAF to districts for Science Olympiad teams.

(1) Increases total appropriation to $11,524,300 including $4,250,000 SAF, $2,025,000 GF/GP, and $5,249,300 Federal. (2) Concurs with Executive to maintain $50,000 GF/GP for administration (3) Allocates $1,475,000 GF/GP for grants based on council recommendations. If council doesn’t make recommendations by June 1, 2016, allows MDE to award grants up to $250,000 on a competitive basis. (3) (4) Increases to $3,750,000 SAF and $5,249,300 Federal. (4) Concurs with Executive. (5) Concurs with Executive. (6) (5) Increases to $500,000 SAF.





Sec. 99s Michigan Science, Technology, Engineering, and Mathematics (MiSTEM) Grants (cont.)

(7) $250,000 GF/GP to the Van Andel Institute for professional development for science teachers.

(7) Deletes. (7) $250,000 GF/GP to the Van Andel Institute for professional development for science teachers.

(7) (6) Increases to $500,000 GF/GP.

NEW Sec. 99t Online Algebra Tool

Appropriates $2,000,000 GF/GP for a statewide online algebra tool.

Appropriates $100 GF/GP for a statewide online algebra tool.

Sec. 101 Instructional Days and Hours

(3) Maintains minimum required 1,098 instructional hours and minimum required 175 days. Beginning in FY 2016-17 the minimum number of instructional days will be 180. (4) Allows for up to 6 days or the equivalent number of hours to be counted as instruction if school is cancelled for reasons outside control of the district (snow days, for example). Also allows the State Supt to waive up to another 3 such days.

(3) Eliminates report required of districts on days and hours of instruction and replaces it with district certification to MDE that the district is in full compliance or a report to MDE for each instance of noncompliance. (4) No Change.

(3) Concurs with Executive. (4) No Change.

(3) Concurs with Executive. (4) No Change.





Sec. 102d Financial Data Analysis Tools

Appropriates $1,500,000 SAF for FY 2015-16 to reimburse districts for the cost of licensing school data analytical tools.


Maintains appropriation of $1,500,000 SAF for FY 2016-17. Adds $100,000 for ISD reimbursements.

Maintains appropriation of $1,500,000 SAF for FY 2016-17. Adds ISDs as eligible recipients. Provides reimbursement formula that first funds up to 50% of the cost for each district and ISD that applies and second distributes remaining funds on an equal per-pupil basis. Caps reimbursement at total cost and shall not support more than 1 software application.

Sec. 104 Assessment Funding

Appropriates $43,394,400 SAF for FY 2015-16 for reimbursement of costs associated with state student assessment requirements. Appropriates $6,250,000 in Federal assessment funding. (2) Requires that assessment results include an item analysis listing all items counted for individual pupil scores and the percentage of pupils choosing each possible response

Reduces appropriation to $33,894,400 SAF in FY 2016-17. Maintains appropriation of $6,250,000 federal funding. (2) No Change.

Appropriates $22,000,000 SAF for FY 2016-17 for a statewide contract for a computer adaptive test which would replace M-STEP. Maintains appropriation of $6,250,000 federal funding. (2) Deleted.

Increases appropriation to $35,236,800 SAF for FY 2016-17. Maintains appropriation of $6,250,000 federal funding. (2) Adds that MDE shall work with CEPI to identify the number of students enrolled at the time assessments are given, and use that to calculate the percentage of pupil assessed for a district’s scorecard. (4) Allocates $1,100,000 to support districts in a digital literacy preparation initiative for grades K to 8.





Sec. 104 Assessment Funding (cont.)

(5) Allocates $8,500,000 for converting to online assessments, expanding writing assessments to additional grade levels, and providing more constructed response questions. (6) Allocates $3,200,000 to the development or selection of an online reporting tool to provide student-level assessment data to educators, parents, and pupils immediately after assessments are scored. (7) Allocates $5,600,000 for implementing a summative assessment system pursuant to Section 104c.

(5) Deletes. (6) (5) No Change. (7) (6) No Change.

(5) Deletes. (6) Deletes (7) Deletes.

(5) Provides that initiative funded in (4) shall be a pilot project implemented through a partnership with a vendor with demonstrable experience in this state and nationally. (6) Allocates $250,000 to districts that use the kindergarten entry assessment developed for FY 2015-16. (7) Provides that MDE may recommend, but not require, that districts allow pupils to use an external keyboard with tablet devices for online M-STEP testing, including, but not limited to, open-ended test items such as constructed response or equation builder items. (5) Deletes. (6) Deletes. (7) Deletes.





Sec. 104b Michigan Merit Exam

Requires that districts administer the Michigan Merit Exam including a college entrance test, a work skills test, and a state summative assessment.

Updates NCLB references with ESSA reference.

Repeals this section. Concurs with Executive.

Sec. 104c State Assessments

(1) Requires districts to administer state assessments to receive state aid. (3) Requires MDE to implement summative assessments for grades 3-11 and provides requirements. (4) Requires that in 2015-2016, MDE field test additional components of the assessment to determine a pupil’s proficiency level prior to grade 3 including: (a) Assessments administered in fall and spring to measure English language arts and mathematics in 1st and 2nd grades. (b) A kindergarten entry assessment administered in the fall in kindergarten including English language arts and math, which may also include observational components measuring cognitive, social-emotional, and physical skills.

(1) No Change. (3) No Change. (4) Revises to require assessments in fall and spring of grades K to 2, and would eliminate the kindergarten entry assessment in favor of a summative assessment.

Repeals this Section. (1) No Change. (3) No Change. (4) Requires MDE to field test a kindergarten readiness assessment (KRA) to replace the kindergarten entry assessment (KEA) and work with at least 3 ISDs and their constituent districts to participate in the KRA.

Sec. 104d Computer Adaptive Tests

Appropriates $4,000,000 for FY 2015-16 to reimburse districts for the purchase of computer adaptive tests or purchase of diagnostic and screening tools or benchmark assessments for K-3 pupils.


Concurs with Executive. Increases appropriation to $9,500,000 SAF for FY 2016-17. Requires reimbursements be based on number of pupils for whom assessments were purchased.





Sec. 107 Adult Education

Appropriates $25,000,000 in SAF for FY 2015-16. (3) Defines eligible participants enrolled in eligible programs including adult basic education, adult English as a second language (ESL), GED test prep, job- or employment-related programs, or high school completion: (a) An individual with a high school diploma or GED and meets 1 of the following: (i) Is less than 20, not enrolled in higher education and enrolled in employment-related program. (ii) Enrolled in an ESL program. (iii) Enrolled in a high school completion program. (iv) Is at least 20 and enrolled in an adult basic education program and determined by a department-approved assessment to be below 9th grade level in reading or mathematics or both. (b) An individual without a high school diploma or GED who meets 1 of the following: (i) Is at least 20. (ii) Is at least 16 and has been permanently expelled.

Maintains appropriation of $25,000,000 for FY 2016-17. (3) Revises as follows: Adds adult secondary education programs. Revises GED to “high school equivalency”. Deletes job-or employment-related programs. Deletes all current participant eligibility requirements and replaces with the following: (a) Is at least 20 years of age. (b) Is an out-of-school youth as defined by the federal Workforce Innovation and Opportunity Act.

Maintains appropriation of $25,000,000 for FY 2016-17. (3) Revises as follows: Adds adult secondary education programs. Revises GED to “high school equivalency”. Deletes job-or employment-related programs. Maintains current law.

Maintains appropriation of $25,000,000 for FY 2016-17. (3) Maintains current law. Maintains current law.





Sec. 107 Adult Education (cont.)

(4) Distributes to ISDs serving as the fiscal agent for each of the 10 prosperity regions. Uses a multi-year phase-in based on both FY 2013-14 total funding in each prosperity region plus the new factors: - FY 2014-15: 2/3 old

method, 1/3 new - FY 2016-17: 1/3 old

method, 2/3 new - FY 2017-18: 100% new

method New allocation factors: - 60% based on region’s

proportion of total state population between ages 18-24 that are not high school graduates.

- 35% based on region’s proportion of total state population ages 25 or older that are not high school graduates.

- 5% based on region’s proportion of total state population ages 18 or older lacking basic English proficiency.

(5) Requires an ISD that is a fiscal agent to distribute funds and collaborate with Talent District Career Council in each region to develop a regional strategy and create a local process and criteria that identify eligible adult education providers with special consideration for contextualized learning and career pathways.

(4) No Change. (5) Adds that the regional strategy also give special consideration to “ADDRESSING BARRIERS TO EDUCATION AND EMPLOYMENT”.

(4) No Change. (5) Concurs with Executive.

(4) Freezes the formula at the current split of 2/3 old method, 1/3 new method. Deletes formula to continue moving toward new method in future fiscal years. (5) Maintains current law.






(6) Allocates up to $2,850 per FTE for a 450-hour program. (7) Establishes requirements for adult basic education and adult ESL programs. Must enroll students that are below 9th grade levels in reading or math or lack basic English proficiency. (8) Establishes requirements for eligible GED programs. (10) Establishes requirements for eligible job- or employment-related programs. (11) A funding recipient receives funding based 80% on enrollment and 20% on participant completion of specified adult education objectives.

(6) Deletes payment based on FTEs and hours of instruction. (7) (6) Revises to add adult secondary education programs and to include students that are below 12th grade levels in English or math. (8) (7) Revises GED to “high school equivalency” (10) Deletes. (11) (9) Deletes formula based on enrollment and completion. Replaces with payments based on all of the following: (a) Statewide allocation criteria including a 3-year average of actual enrollments, census data, and local needs. (b) Participant completion of adult basic education objectives, English proficiency, high school equivalency, high school diploma, enrollment in postsecondary institution, or employment. (c) Participant completion of core indicators as identified by the federal Workforce Innovation and Opportunity Act. (d) Allowable expenditures.

(6) Concurs with Executive. (7) (6) Concurs with Executive. (8) (7) Concurs with Executive. (10) Concurs with Executive. (11) (9) Concurs with Executive.

(6) Maintains current law. (7) Maintains current law. (8) Maintains current law. (10) Maintains current law. (11) Maintains current law.






(16) Requires program to provide information and allow department to review records. Requires program to pay a CTE program under Sec. 61a for costs of adult basic education provided by the CTE program. (17) Requires that ISD audits of adult education programs be performed pursuant to adult education auditing and accounting manuals published by MDE. (18) Appropriates $500,000 for a pilot program as the 1st of 3 years of funding for a program linking Adult Ed, a CTE center, Michigan Works!, and local employers to dually enroll participants in adult education and at least 1 technical course at the CTE center. (23) Requires MDE to approve at least 1 high school equivalency test and determine whether a high school equivalency certificate meets the requisite standards for high school equivalency in Michigan. (ADDED by PA 56 of 2016 which will take effect June 27, 2016.)

(16) (14) No Change. (17) Deletes. (18) (15) Updates to 2nd of 3 years of funding. N/A

(16) (14) No Change. (17) Concurs with Executive. (18) (15) Concurs with Executive. N/A

(16) No Change. (17) Maintains current law. (18) Concurs with Executive. (23) Deletes.





Sec. 147 Retirement Contribution Rate

Provides retirement rates separated into seven subgroups based on hire date and benefit and contribution choices. Total contribution rates for FY 2015-16 to a range from 31.49% - 36.31%. Maximum employer contribution rates for FY 2015-16 range from 20.96% - 25.78%, with slight normal rate fluctuations for subgroups in between. Reflects a 23-year amortization period.

Revises the total rates for FY 2016-17 to a range from 32.66% - 36.64%. Maximum employer contribution rates for FY 2016-17 range from 20.96% - 24.94%, with slight normal rate fluctuations for subgroups in between. Revises to a 22-year amortization period.



Sec. 147a MPSERS Cost Offset

Appropriates $100,000,000 for FY 2015-16 to offset a portion of MPSERS costs, based on each district's share of MPSERS payroll in the preceding fiscal year.




Sec. 147c. MPSERS Prefunding - Unfunded Accrued Liability Payment

Appropriates $892,900,000 SAF and $600,000 GF/GP to pay for the MPSERS unfunded accrued liability (UAL) that exceeds the maximum rate charged to MPSERS employers allowed under the Public School Employees' Retirement Act. (2) Calculates average of $601 per pupil and a range for districts between $4 and $2,300 per pupil. (7) Requires MDE to publish an estimated rate cap per pupil for each district by December 20, 2015.

Increases appropriation to $982,200,000 SAF and $600,000 GF/GP for FY 2016-17 based on actuarial estimates for the state share of UAL costs. (2) Revises average to $660 and the range to between $5 and $3,100 per pupil. (7) Updates to 2016.







Sec. 152a Adair Data collection and reporting costs

Appropriates $38,000,500 for FY 2015-16 to reimburse districts for data collection and reporting costs as required in Adair v. Michigan.




NEW Sec. 152b Reimburse-ments to Nonpublic Schools

Not included. Adds $1,000,000 SAF for FY 2016-17 for reimbursements to nonpublic schools in amount equal to $10 per pupil for the costs of complying with statutory requirements.

Adds $5,000,000 GF/GP for FY 2016-17 for reimbursements to nonpublic schools in amount equal to $50 per pupil for the costs of complying with statutory requirements.

Sec. 166 Penalty for Family Planning

Penalizes a district in which a board member or staff distributes family planning drugs or devices or makes referrals for abortions by 5% of its total state aid allocation.

Repeals this section. Revises to require a district to adopt a disciplinary policy for school officials or staff for violations of 380.1507 or for making abortion referrals. A district that fails to adopt a policy would forfeit $100,000 of its state aid. The policy would create financial penalties for staff or contractors, and require that penalties be negotiated in bargaining agreements.

Maintains current law.

Sec. 166b Nonpublic Pupils

Provides that a nonpublic student may be counted as a part-time pupil by a district for receipt of state aid only for nonessential elective courses that are offered to full-time pupils in that grade level or age group during regularly scheduled school hours.

(1) and (2) Clarifies that courses must be offered “AND BEING PROVIDED” to full-time pupils in that grade level or age group during regularly scheduled school hours. (3) Adds that a nonpublic student may be counted as a part-time pupil “SUBJECT TO SECTION 6(4)(GG)” which caps it at 1/3 of an FTE.

Maintains current law. Maintains current law.

Maintains current law. Concurs with Executive but reflects Senate version of Sec. 6(4)(GG) which caps it at 1/2 of an FTE.





NEW Sec. 167a Forfeit of funding for Suspended or Expelled Pupils

Adds language that requires a district to implement a plan to reduce the number of expulsions and suspensions that exceed 10 days. Provides intent to reduce state funding to districts that have not implemented a plan beginning in FY 2017-18.

Not included.

Enacting Section 1 State Spending and Payments to Locals

N/A Supplemental Requests 2016-5 and 2016-7 revise FY 2015-16 total state spending from state sources to $12,070,439,300 and payments to locals are $11,939,809,800. FY 2016-17 total state spending from state sources is $12,364,479,400 and payments to locals are $12,212,368,600.

Supplemental Requests 2016-5 and 2016-7 revise FY 2015-16 total state spending from state sources to $12,060,439,300 and payments to locals are $11,929,809,800. FY 2016-17 total state spending from state sources is $12,369,050,200 and payments to locals are $12,210,009,400.

FY 2015-16 adjustments not included. FY 2016-17 total state spending from state resources is $12,288,479,600 and payments to locals are $12,127,646,200.

Enacting Section 2 Repeals Sections as of October 1, 2016.

N/A Repeals following sections: 22i – Technology Readiness Infrastructure Grants 25e– Pupil Transfer Process 31c– Gang Prevention Grant 31h – Cooperative Education Grant 43– Teacher Certification Test Rewrite 99c – Civics Education 104d – Computer Adaptive Tests 166 – Penalty for Dispensing Family Planning Drugs or Devices/Abortion Referrals

Repeals following sections: 22i – Technology Readiness Infrastructure Grants 25e– Pupil Transfer Process 31h – Cooperative Education Grant 43– Teacher Certification Test Rewrite 99c – Civics Education 104b – Michigan Merit Exam 104c – State Summative Assessments 104d – Computer Adaptive Tests

Repeals the following sections: 22i – Technology Readiness Infrastructure Grants 31c– Gang Prevention Grant 43– Teacher Certification Test Rewrite





Enacting Section 3 Effective Date

Effective date is October 1, 2016.

Effective date is October 1, 2016, except provides immediate effect for the following sections: 11, 11j, 22a, 22b, 24a, 26a, 26c, 31f, 51a, 51c, and 61a.

Effective date is October 1, 2016.

Documents

SCHOOL AID SECTION-BY-SECTION HIGHLIGHTS Fiscal Year … · House Fiscal Agency 1 5/9/2016 SCHOOL AID SECTION-BY-SECTION HIGHLIGHTS Fiscal Year 2016-17 House Bill 5291 (H-1) ... than