MI HB5963

Allocates $3,323,800,000.00 for 2009-2010 in discretionary nonmandated payments to school districts, plus an estimated $450,000,000.00 in federal American Recovery and Reinvestment Act funds.

Beginning December 2010-2011, requires the department to deduct from each district's state aid allocation any amount by which their general fund balance exceeds 15% of their current operating expenditures.

Districts must administer standardized assessments in grades 1-5, comply with specified school code sections, furnish required data to the state, and meet other accountability requirements to receive allocations.

Allocates $65,376,800.00 to intermediate districts for 2009-2010 (80% of prior year amount) and applies the same general fund balance deduction requirement beginning December 2010-2011.

Establishes procedures for escrowing funds to address potential litigation liabilities related to school funding constitutional obligations and federal Medicaid reimbursement disputes, with up to $1,000,000.00 available for state litigation costs.