Eligibility to receive state aid; submission of number of pupils enrolled and in regular daily attendance; certification of data; noncompliance; withholding state aid; pupil instruction; minimum number of hours or days; requirements; guidelines; waiver; counting number of hours of qualifying teacher professional development; subsections (3) and (8) inapplicable to cyber school or dropout recovery program; "eligible pupil" defined; review of waiver standards.
MCL 388.1701.amended
proposed388.1701.amended. Eligibility to receive state aid; submission of number of pupils enrolled and in regular daily attendance; certification of data; noncompliance; withholding state aid; pupil instruction; minimum number of hours or days; requirements; guidelines; waiver; counting number of hours of qualifying teacher professional development; subsections (3) and (8) inapplicable to cyber school or dropout recovery program; "eligible pupil" defined; review of waiver standards.
Sec. 101.
(1) To be eligible to receive state aid under this article, not later than the fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each district superintendent shall submit and certify to the center and the intermediate superintendent, in the form and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance, including identification of tuition-paying pupils, in the district as of the pupil membership count day and as of the supplemental count day, as applicable, for the current school year. In addition, a district maintaining school during the entire year shall submit and certify to the center and the intermediate superintendent, in the form and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance in the district for the current school year pursuant to rules promulgated by the superintendent. Not later than the sixth Wednesday after the pupil membership count day and not later than the sixth Wednesday after the supplemental count day, the district shall resolve any pupil membership conflicts with another district, correct any data issues, and recertify the data in a form and manner prescribed by the center and file the certified data with the intermediate superintendent. If a district fails to submit and certify the attendance data, as required under this subsection, the center shall notify the department and the department shall withhold state aid due to be distributed under this article from the defaulting district immediately, beginning with the next payment after the failure and continuing with each payment until the district complies with this subsection. If a district does not comply with this subsection by the end of the fiscal year, the district forfeits the amount withheld. A person who willfully falsifies a figure or statement in the certified and sworn copy of enrollment is subject to penalty as prescribed by section 161.
(2) To be eligible to receive state aid under this article, not later than the twenty-fourth Wednesday after the pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day, an intermediate district shall submit to the center, in a form and manner prescribed by the center, the audited enrollment and attendance data as described in subsection (1) for the pupils of its constituent districts and of the intermediate district. If an intermediate district fails to submit the audited data as required under this subsection, the department shall withhold state aid due to be distributed under this article from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If an intermediate district does not comply with this subsection by the end of the fiscal year, the intermediate district forfeits the amount withheld.
(3) Except as otherwise provided in subsections (11) and (12) all of the following apply to the provision of pupil instruction:
(a) Except as otherwise provided in this section, each district shall provide at least 1,098 hours and 180 days of pupil instruction. If a collective bargaining agreement that provides a complete school calendar was in effect for employees of a district as of June 24, 2014, and if that school calendar is not in compliance with this subdivision, then this subdivision does not apply to that district until after the expiration of that collective bargaining agreement. A district may apply for a waiver under subsection (9) or subdivision (h) from the requirements of this subdivision.
(b) Except as otherwise provided in this article, a district failing to comply with the required minimum hours and days of pupil instruction under this subsection forfeits from its total state aid allocation an amount determined by applying a ratio of the number of hours or days the district was in noncompliance in relation to the required minimum number of hours and days under this subsection. Not later than the first business day in August, the board of each district shall either certify to the department that the district was in full compliance with this section regarding the number of hours and days of pupil instruction in the previous school year, or report to the department, in a form and manner prescribed by the center, each instance of noncompliance. If the district did not provide at least the required minimum number of hours and days of pupil instruction under this subsection, the department shall make the deduction of state aid in the following fiscal year from the first payment of state school aid. A district is not subject to forfeiture of funds under this subsection for a fiscal year in which a forfeiture was already imposed under subsection (6).
(c) Hours or days lost because of strikes or teachers' conferences are not counted as hours or days of pupil instruction.
(d) Except as otherwise provided in this subsection, if a district does not have at least 75% of the district's membership in attendance on any day of pupil instruction, the department shall pay the district state aid in that proportion of 1/180 that the actual percent of attendance bears to 75%.
(e) If a district adds 1 or more days of pupil instruction to the end of its instructional calendar for a school year to comply with subdivision (a) because the district otherwise would fail to provide the required minimum number of days of pupil instruction even after the operation of subsection (4) due to conditions not within the control of school authorities, then subdivision (d) does not apply for any day of pupil instruction that is added to the end of the instructional calendar. Instead, for any of those days, if the district does not have at least 60% of the district's membership in attendance on that day, the department shall pay the district state aid in that proportion of 1/180 that the actual percentage of attendance bears to 60%. For any day of pupil instruction added to the instructional calendar as described in this subdivision, the district shall report to the department the percentage of the district's membership that is in attendance, in the form and manner prescribed by the department.
(f) At the request of a district that operates a department-approved alternative education program and that does not provide instruction for pupils in all of grades K to 12, the superintendent shall grant a waiver from the requirements of subdivision (d). The waiver must provide that an eligible district is subject to the proration provisions of subdivision (d) only if the district does not have at least 50% of the district's membership in attendance on any day of pupil instruction. In order to be eligible for this waiver, a district must maintain records to substantiate its compliance with the following requirements:
(i) The district offers the minimum hours of pupil instruction as required under this section.
(ii) For each enrolled pupil, the district uses appropriate academic assessments to develop an individual education plan that leads to a high school diploma.
(iii) The district tests each pupil to determine academic progress at regular intervals and records the results of those tests in that pupil's individual education plan.
(g) All of the following apply to a waiver granted under subdivision (f):
(i) If the waiver is for a blended model of delivery, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(ii) If the waiver is for a 100% online model of delivery and the educational program for which the waiver is granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year and ensures that each pupil participates in the educational program for at least 1,098 hours during a school year, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(iii) A waiver that is not a waiver described in subparagraph (i) or (ii) is valid for 3 fiscal years, unless it is revoked by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
(h) Subdivision (d) does not apply to a district-operated special education program approved by the department if the district-operated special education program's instructional calendar exceeds 180 days of pupil instruction. For any day of instruction provided as part of a district-operated special education program described in this subdivision, the district-operated special education program is exempt from the attendance threshold established under subdivision (d), provided that the district-operated special education program offers the minimum hours of pupil instruction required under this section and maintains documentation of the program's approved instructional calendar.
(i) At the request of a district with fewer than 100 pupils in membership as reported in the most recent fall pupil count, the superintendent shall grant a waiver from the requirements of subdivision (d) if the district demonstrates that the absence of a single household may materially reduce the district's daily attendance percentage below the threshold established in subdivision (d). A waiver granted under this subdivision must provide that the district is subject to the proration provisions of subdivision (d) only if the district does not have at least 60% of the district's membership in attendance on any day of pupil instruction. The district shall maintain records necessary to substantiate the district's eligibility for a waiver granted under this subdivision.
(j) The superintendent shall promulgate rules for the implementation of this subsection.
(4) All of the following apply to the counting of hours and days of pupil instruction under this section:
(a) Except as otherwise provided in this subsection, the first 6 days or the equivalent number of hours for which pupil instruction is not provided because of conditions not within the control of school authorities, such as severe storms, fires, epidemics, utility power unavailability, water or sewer failure, or health conditions as defined by the city, county, or state health authorities, are counted as hours and days of pupil instruction. For the 2025-2026 school year only, a district may count up to 4 additional days in which pupil instruction is not provided because of conditions not within the control of school authorities as described in this subdivision as hours and days of pupil instruction if all of the following apply:
(i) A district seeking to count up to 4 additional days as hours and days of pupil instruction under this subdivision is located wholly or partially in any of the following counties:
(A) Mason County.
(B) Lake County.
(C) Osceola County.
(D) Clare County.
(E) Gladwin County.
(F) Arenac County.
(G) Manistee County.
(H) Wexford County.
(I) Missaukee County.
(J) Roscommon County.
(K) Ogemaw County.
(L) Iosco County.
(M) Benzie County.
(N) Grand Traverse County.
(O) Kalkaska County.
(P) Crawford County.
(Q) Oscoda County.
(R) Alcona County.
(S) Leelanau County.
(T) Antrim County.
(U) Otsego County.
(V) Montmorency County.
(W) Alpena County.
(X) Charlevoix County.
(Y) Emmet County.
(Z) Cheboygan County.
(AA) Presque Isle County.
(BB) Gogebic County.
(CC) Ontonagon County.
(DD) Houghton County.
(EE) Iron County.
(FF) Baraga County.
(GG) Marquette County.
(HH) Dickinson County.
(II) Menominee County.
(JJ) Alger County.
(KK) Delta County.
(LL) Schoolcraft County.
(MM) Luce County.
(NN) Chippewa County.
(OO) Mackinac County.
(PP) Keweenaw County.
(ii) A district described in subparagraph (i) was not able to provide pupil instruction on March 12, 13, 16, or 17 due to conditions not within the control of school authorities as described in this subdivision.
(iii) A district described in subparagraph (i) counts only the dates described in subparagraph (ii) in which pupil instruction was not provided as additional hours and days of pupil instruction under this subdivision.
(b) For the 2025-2026 school year only, a district located in a county described in Executive Order No. 2026-7 or Executive Order No. 2026-9 may count up to 5 additional days in which pupil instruction is not provided because of conditions not within the control of school authorities as described in Executive Order No. 2026-7 or Executive Order No. 2026-9 as hours and days of pupil instruction.
(c) For the 2025-2026 school year only, a district located in a county or region described in Executive Order No. 2026-11 may count up to 4 additional days in which pupil instruction is not provided because of conditions not within the control of school authorities as described in Executive Order No. 2026-11 as hours and days of pupil instruction.
(d) With the approval of the superintendent of public instruction, the department shall count as hours and days of pupil instruction for a fiscal year not more than 3 additional days or the equivalent number of additional hours for which pupil instruction is not provided in a district due to unusual and extenuating occurrences resulting from conditions not within the control of school authorities such as those conditions described in this subsection.
(e) A district that counts hours or days of professional development for teachers as hours or days of pupil instruction, as provided under subsection (10), is eligible to have additional hours or days counted as hours and days of pupil instruction as provided under subdivision (d) to the same extent as a district that does not count hours or days of professional development for teachers as hours or days of pupil instruction.
(f) In deciding whether to approve the counting of additional hours or days of pupil instruction under subdivision (d) for a district, the superintendent of public instruction shall not take into account whether or not the district counts hours or days of professional development for teachers as hours or days of pupil instruction, as provided under subsection (10).
(g) Subsequent hours or days beyond those described in subdivisions (a) to (d) are not counted as hours or days of pupil instruction.
(5) A district does not forfeit part of its state aid appropriation because it adopts or has in existence an alternative scheduling program for pupils in kindergarten if the program provides at least the number of hours required under subsection (3) for a full-time equated membership for a pupil in kindergarten as provided under section 6(4).
(6) In addition to any other penalty or forfeiture under this section, if at any time the department determines that 1 or more of the following have occurred in a district, the district forfeits in the current fiscal year beginning in the next payment to be calculated by the department a proportion of the funds due to the district under this article that is equal to the proportion below the required minimum number of hours and days of pupil instruction under subsection (3), as specified in the following:
(a) The district fails to operate its schools for at least the required minimum number of hours and days of pupil instruction under subsection (3) in a school year, including hours and days counted under subsection (4).
(b) The board of the district takes formal action not to operate its schools for at least the required minimum number of hours and days of pupil instruction under subsection (3) in a school year, including hours and days counted under subsection (4).
(7) In providing the minimum number of hours and days of pupil instruction required under subsection (3), a district shall use the following guidelines, and a district shall maintain records to substantiate its compliance with the following guidelines:
(a) Except as otherwise provided in this subsection, a pupil must be scheduled for at least the required minimum number of hours of instruction, excluding study halls, or at least the sum of 90 hours plus the required minimum number of hours of instruction, including up to 2 study halls.
(b) The time a pupil is assigned to any tutorial activity in a block schedule may be considered instructional time, unless that time is determined in an audit to be a study hall period.
(c) Except as otherwise provided in this subdivision, a pupil in grades 9 to 12 for whom a reduced schedule is determined to be in the individual pupil's best educational interest, or a pupil in grades 6 to 8 for whom a reduced schedule is determined to be in the individual pupil's best educational interest due to the pupil's participation in an advanced curriculum, must be scheduled for a number of hours equal to at least 80% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil. A pupil in grades 6 to 12 who is scheduled in a 4-block schedule may receive a reduced schedule under this subsection if the pupil is scheduled for a number of hours equal to at least 75% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil.
(d) For a pupil in grades 9 to 12 enrolled in a cooperative education program, or for a special education pupil, in determining full-time equated membership for that pupil, the pupil is not considered less than a full-time equated pupil solely because of the effect of the pupil's enrollment in the cooperative education program or special education program, including necessary travel time, on the number of class hours provided by the district to the pupil.
(e) In grades 7 through 12, instructional time that is part of a Junior Reserve Officer Training Corps (JROTC) program is considered to be pupil instruction time regardless of whether the instructor is a certificated teacher if all of the following are met:
(i) The instructor has met all of the requirements established by the United States Department of Defense and the applicable branch of the armed services for serving as an instructor in the Junior Reserve Officer Training Corps program.
(ii) The board of the district or intermediate district employing or assigning the instructor complies with the requirements of sections 1230 and 1230a of the revised school code, MCL 380.1230 and 380.1230a, with respect to the instructor to the same extent as if employing the instructor as a regular classroom teacher.
(8) Except as otherwise provided in subsections (11) and (12), the department shall apply the guidelines under subsection (7) in calculating the full-time equivalency of pupils.
(9) Upon application by the district for a particular fiscal year, the superintendent shall waive for a district the minimum number of hours and days of pupil instruction requirement of subsection (3) for a department-approved alternative education program or another innovative program approved by the department, including a 4-day school week. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, the district is not subject to forfeiture under this section for the specific program covered by the waiver. If the district does not comply with the terms of the waiver, the amount of the forfeiture is calculated based upon a comparison of the number of hours and days of pupil instruction actually provided to the minimum number of hours and days of pupil instruction required under subsection (3). A district shall report pupils enrolled in a department-approved alternative education program under this subsection to the center in a form and manner determined by the center. All of the following apply to a waiver granted under this subsection:
(a) If the waiver is for a blended model of delivery, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(b) If the waiver is for a 100% online model of delivery and the educational program for which the waiver is granted makes educational services available to pupils for a minimum of at least 1,098 hours during a school year and ensures that each pupil is on track for course completion at proficiency level, a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by the superintendent.
(c) A waiver that is not a waiver described in subdivision (a) or (b) is valid for 3 fiscal years, unless it is revoked by the superintendent, and must be renewed at the end of the 3-year period to remain in effect.
(10) A district may count up to 38 hours of professional development for teachers as hours of pupil instruction. All of the following apply to the counting of professional development as pupil instruction under this subsection:
(a) If the professional development exceeds 5 hours in a single day, that day may be counted as a day of pupil instruction.
(b) At least 8 hours of the professional development counted as hours of pupil instruction under this subsection must be recommended by a districtwide professional development advisory committee appointed by the district board. The advisory committee must be composed of teachers employed by the district who represent a variety of grades and subject matter specializations, including special education; nonteaching staff; parents; and administrators. The majority membership of the committee must be composed of teaching staff.
(c) Professional development provided online is allowable and encouraged, as long as the instruction has been approved by the district. The department shall issue a list of approved online professional development providers that must include the Michigan Virtual School.
(d) Professional development may only be counted as hours of pupil instruction under this subsection for the pupils of those teachers scheduled to participate in the professional development.
(e) The professional development must meet all of the following to be counted as pupil instruction under this subsection:
(i) Be aligned to the school or district improvement plan for the school or district in which the professional development is being provided.
(ii) Be linked to 1 or more criteria in the evaluation tool developed or adopted by the district or intermediate district under section 1249 of the revised school code, MCL 380.1249.
(iii) Has been approved by the department as counting for state continuing education clock hours. The number of hours of professional development counted as hours of pupil instruction under this subsection may not exceed the number of state continuing education clock hours for which the professional development was approved.
(iv) Not more than a combined total of 10 hours of the professional development takes place before the first scheduled day of school for the school year ending in the fiscal year and after the last scheduled day of school for that school year.
(v) Not more than 10 hours of the professional development takes place in a single month.
(vi) At least 75% of teachers scheduled to participate in the professional development are in attendance.
(11) Subsections (3) and (8) do not apply to a school of excellence that is a cyber school, as that term is defined in section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a of the revised school code, MCL 380.553a. Beginning July 1, 2021, this subsection is subject to section 8c. It is the intent of the legislature that the immediately preceding sentence apply retroactively and is effective July 1, 2021.
(12) Subsections (3) and (8) do not apply to eligible pupils enrolled in a dropout recovery program that meets the requirements of section 23a. As used in this subsection, "eligible pupil" means that term as defined in section 23a.
(13) At least every 2 years the superintendent shall review the waiver standards set forth in the pupil accounting and auditing manuals to ensure that the waiver standards and waiver process continue to be appropriate and responsive to changing trends in online learning. The superintendent shall solicit and consider input from stakeholders as part of this review.
1979, Act 94, Eff. Oct. 1, 1979; Am. 1983, Act 169, Eff. Oct. 1, 1983; Am. 1984, Act 239, Eff. Oct. 1, 1984; Am. 1985, Act 110, Eff. Oct. 1, 1985; Am. 1986, Act 212, Eff. Oct. 1, 1986; Am. 1986, Act 298, Imd. Eff. Dec. 22, 1986; Am. 1989, Act 197, Eff. Oct. 1, 1989; Am. 1990, Act 207, Eff. Oct. 1, 1990; Am. 1991, Act 118, Imd. Eff. Oct. 11, 1991; Am. 1992, Act 142, Imd. Eff. July 15, 1992; Am. 1992, Act 148, Eff. Oct. 1, 1992; Am. 1993, Act 175, Eff. Oct. 1, 1993; Am. 1993, Act 336, Eff. Oct. 1, 1994; Am. 1994, Act 283, Eff. Oct. 1, 1994; Am. 1995, Act 130, Imd. Eff. June 30, 1995; Am. 1996, Act 180, Imd. Eff. Apr. 19, 1996; Am. 1996, Act 300, Eff. Oct. 1, 1996; Am. 1997, Act 93, Eff. Oct. 1, 1997; Am. 1997, Act 142, Imd. Eff. Nov. 19, 1997; Am. 1998, Act 339, Imd. Eff. Oct. 13, 1998; Am. 1999, Act 119, Imd. Eff. July 20, 1999; Am. 2000, Act 297, Imd. Eff. July 26, 2000; Am. 2002, Act 191, Imd. Eff. Apr. 26, 2002; Am. 2002, Act 476, Imd. Eff. June 27, 2002; Am. 2003, Act 158, Eff. Oct. 1, 2003; Am. 2004, Act 127, Imd. Eff. June 3, 2004; Am. 2004, Act 351, Imd. Eff. Sept. 30, 2004; Am. 2005, Act 41, Imd. Eff. June 7, 2005; Am. 2005, Act 155, Imd. Eff. Sept. 30, 2005; Am. 2006, Act 342, Eff. Oct. 1, 2006; Am. 2009, Act 121, Imd. Eff. Oct. 19, 2009; Am. 2009, Act 203, Imd. Eff. Jan. 4, 2010; Am. 2010, Act 110, Imd. Eff. July 8, 2010; Am. 2012, Act 201, Eff. Oct. 1, 2012; Am. 2012, Act 516, Imd. Eff. Dec. 28, 2012; Am. 2013, Act 29, Imd. Eff. May 16, 2013; Am. 2013, Act 60, Eff. Oct. 1, 2013; Am. 2014, Act 116, Imd. Eff. Apr. 11, 2014; Am. 2014, Act 196, Imd. Eff. June 24, 2014; Am. 2015, Act 85, Eff. Oct. 1, 2015; Am. 2016, Act 249, Eff. Oct. 1, 2016; Am. 2018, Act 586, Imd. Eff. Dec. 28, 2018; Am. 2019, Act 11, Imd. Eff. May 13, 2019; Am. 2019, Act 58, Eff. Oct. 1, 2019; Am. 2020, Act 148, Imd. Eff. Aug. 20, 2020; Am. 2020, Act 165, Eff. Oct. 1, 2020; Am. 2021, Act 48, Eff. Oct. 1, 2021; Am. 2022, Act 144, Imd. Eff. July 14, 2022; Am. 2023, Act 103, Imd. Eff. July 21, 2023; Am. 2025, Act 5, Imd. Eff. June 2, 2025; Am. 2025, Act 15, Imd. Eff. Oct. 7, 2025; Am. 2026, Act 15, Imd. Eff. May 29, 2026; Am. 2026, Act 25, Eff. Oct. 1, 2026
[Compiler] The last sentence of subsection (4), as amended by Act 180 of 1996, which provided “However, for 1995-96 only, for a school district at or above townline 16, the first 5 days for which pupil instruction is not provided because of conditions described in this subsection shall be counted as days of pupil instruction.” was vetoed by the governor on April 22, 1996.
[Compiler] Enacting section 1 of Act 351 of 2004 provides:
[Compiler] “Enacting section 1. In accordance with section 30 of article IX of the state constitution of 1963, total state spending in this amendatory act from state sources for fiscal year 2004-2005 is estimated at $11,173,900,000.00 and state appropriations to be paid to local units of government for fiscal year 2004-2005 are estimated at $11,113,650,400.00.”
[Compiler] Enacting section 1 of 2005 PA 155 provides:
[Compiler] "Enacting section 1. In accordance with section 30 of article I of the state constitution of 1963, total state spending in this amendatory act and in House Bill No. 4831 of the 93rd Legislature from state sources for fiscal year 2005-2006 is estimated at $11,364,814,000.00 and state appropriations to be paid to local units of government for fiscal year 2005-2006 are estimated at $11,341,913,100.00."
[Compiler] Enacting section 1 of Act 342 of 2006 provides:
[Compiler] "Enacting section 1. (1) In accordance with section 30 of article I of the state constitution of 1963, total state spending in this amendatory act from state sources for fiscal year 2006-2007 is estimated at $11,682,508,200.00 and state appropriations to be paid to local units of government for fiscal year 2006-2007 are estimated at $11,536,597,200.00.
[Compiler] (2) In accordance with section 30 of article I of the state constitution of 1963, total state spending from state sources for fiscal year 2005-2006 in this amendatory act and 2005 PA 155 is estimated at $11,308,027,200.00 and state appropriations to be paid to local units of government for fiscal year 2004-2005 are estimated at $11,285,376,300.00."
[Compiler] Enacting section 1 of Act 121 of 2009 provides:
[Compiler] "Enacting section 1. In accordance with section 30 of article I of the state constitution of 1963, total state spending in this amendatory act from state sources for fiscal year 2009-2010 is estimated at $10,825,754,100.00 and state appropriations to be paid to local units of government for fiscal year 2009-2010 are estimated at $10,718,801,700.00."
[AdminRule] R 340.1 et seq. of the Michigan Administrative Code.
[Prospective] ***** 388.1701.amended THIS AMENDED SECTION IS EFFECTIVE OCTOBER 1, 2026 *****
Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/Laws/MCL?objectName=mcl-388-1701-amendedFetched: 10/20/2026